Ottawa invests $11 million in Conifex to support northern B.C. forestry jobs

The Government of Canada announced an $11-million investment for Conifex Timber Inc. on Oct. 28 through the Regional Tariff Response Initiative (RTRI). The funding will modernize the company’s operations at its Mackenzie facility, which produces wood products and bioenergy for Canadian and international markets and supports hundreds of jobs in northern British Columbia. The investment includes $10 million that must be repaid and $1 million that does not.

Conifex will use the funding to upgrade transfer systems, modernize five kilns and install automated production equipment. The changes are intended to increase productivity, improve product quality and lower production costs, strengthening the company’s competitiveness and its prospects in Canadian and international markets.

Northern B.C. is home to innovative businesses, skilled workers and abundant natural resources that contribute to Canada’s economic strength. Businesses, including those in forestry, create jobs, support regional supply chains and sustain communities. Tariffs and rapidly changing trade conditions are raising costs, disrupting supply chains and adding pressure on workers and businesses. The federal government says it is defending industries harmed by what it calls unjustified U.S. tariffs and helping Canadian producers compete with U.S. products in the Canadian market. The RTRI is delivered in B.C. by Pacific Economic Development Canada (PacifiCan) and helps tariff-affected businesses adapt to changing markets, improve competitiveness and build trade resilience.

Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for PacifiCan, said forestry is a foundation for strong communities across northern B.C. and businesses are facing real pressure from tariffs. He said the investment will help modernize Conifex’s Mackenzie sawmill, strengthen its competitiveness and protect good jobs relied on by workers, families and the community. Investing in the future of B.C.’s forest sector, he said, supports northern communities and a stronger, more resilient Canadian economy.

Tim Hodgson, Minister of Energy and Natural Resources, said Canada’s and B.C.’s forest sector faces unprecedented challenges but has substantial potential to drive economic growth, create and sustain good jobs, and compete globally. Ahead of the planned release of Canada’s Forest Sector Strategy in November 2026, the government is making strategic investments to help producers lower costs, raise productivity and improve competitiveness, he said. He said the Conifex investment is intended to secure hundreds of jobs in northern B.C. and support the forest sector’s long-term prospects.

The RTRI, delivered by Canada’s regional development agencies, is part of the federal strategy to defend Canadian jobs, industries and supply chains and a co-ordinated effort to protect businesses and workers from tariff impacts. It provides $3.45 billion over four years for tariff-affected small and medium-sized businesses to adjust to market conditions, strengthen competitiveness, diversify into new markets and build trade resilience, with more flexibility to address liquidity pressures.

The federal government is also introducing a $7.5-billion package of new and enhanced measures to provide fast, simple and flexible support to workers and businesses. This builds on nearly $25 billion in support provided since the implementation of what the government calls unjustified U.S. tariffs. Canada’s forthcoming Forest Sector Strategy is a plan for a competitive, sustainable and prosperous forest sector that continues to support communities, create jobs and provide world-class products to customers at home and around the world.