Canfor Plans Permanent Closure of Northwood Pulp Mill

On Tuesday, Canfor Corporation announced the permanent closure of its Northwood pulp mill in Prince George, BC.

The company said the pulp and paper sector continues to face significant pressure from a structural shift in global pulp markets. Substantial new pulp production capacity has come online worldwide, creating oversupply and putting downward pressure on global pulp prices.

Canfor added that persistent challenges accessing fiber have compounded those market conditions, resulting in a prolonged period of unsustainable financial losses for Canfor Pulp. With no foreseeable improvement in the outlook, the company said it decided to permanently close the Northwood facility.

The closure will remove about 300,000 tonnes of annual Northern bleached softwood kraft (NBSK) capacity and directly affect approximately 300 employees in Prince George. The mill will begin an orderly wind-down and is expected to close in late Q4.

Canfor President and CEO Susan Yurkovich said:

“We recognize this is incredibly difficult news that will have a significant impact on our employees, their families, the businesses that support our operation, and the communities where we operate. This decision is in no way a reflection of the dedication or hard work of our employees. The team at Northwood has worked tirelessly to improve performance, navigating challenging conditions to support their operation, and we are grateful for their efforts. In the weeks ahead, we are committed to supporting our employees through this transition, including providing severance, and exploring opportunities to redeploy impacted employees to our other operating locations where possible.”