Conifex Timber Indefinitely Curtails El Dorado Sawmill Operations

SEATTLE (Scrap Monster): Conifex Timber Inc. has announced indefinite curtailment of operations at its El Dorado sawmill. The curtailment will be phased-in over the next two months, said the company press release.

Announcing the decision, Ken Shields, Chair and CEO expressed regrets over the decision. He noted that the lumber prices are too modest to justify continued operations at the mill. It requires additional capital expenditures to maintain the mill as an efficient and modern one. Although the company wishes to restart the mill at the earliest, its immediate priority would be concentrated on identifying the scope of Phase 2 capital investment to revive the mill operations, Shields added.

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The curtailment is estimated to impact the U.S. South lumber production by at least 21 million board feet.

Earlier in June this year, the company had announced its decision to reduce the number of shifts to one, a move which was said to be aimed at optimizing the mill operations, on account of poor market conditions.