Conifex, Hampton Lumber agree to sawmill sale

VANCOUVER — Conifex Timber announced this week it has entered into a purchase agreement with Hampton Lumber for the sale of its Fort St. James sawmill and associated forest license. The purchase price is approximately $39 million plus the market value of finished lumber and log inventory at closing. “We have known for some time that lumber industry rationalization is inevitable because too little sawlog supply is available to maintain the existing manufacturing base in the interior region of B.C.,” Conifex Chairman and CEO Ken Shields said in a release. “The decision we have taken to sell the mill was extremely difficult; however, we are encouraged by Hampton’s plans for the site.” Hampton Lumber operates nine sawmills in Oregon, Washington and B.C. “We intend to build a new sawmill in Fort St. James and look forward to building relationships with local First Nations and other community partners,” said Hampton Lumber CEO Steve Zika.