Canfor to Close Northwood Pulp Mill, Resulting in 300 Job Losses in Prince George

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Canfor announces the closure of its Northwood pulp mill near Prince George, B.C., leading to significant job losses as the pulp and paper sector faces market challenges.

In a significant development for the forestry industry, Canfor has declared its intention to permanently shutter the Northwood pulp mill situated outside of Prince George, British Columbia. This closure will unfortunately result in the loss of 300 jobs, a decision the Vancouver-based company announced on Tuesday. In its statement, Canfor expressed a commitment to assist its affected employees, which includes providing severance packages and investigating possibilities to redeploy workers to other Canfor facilities.
The challenges faced by the pulp and paper sector are profound, according to Canfor. The firm noted that an increase in global production capacity has created an oversupply within the market, which has subsequently exerted downward pressure on pricing. Coupled with ongoing difficulties in accessing wood fibre, these factors have led to what Canfor describes as a prolonged period of unsustainable financial losses for its pulp division.
With no immediate improvement on the horizon, Canfor has made the difficult choice to close the Northwood facility, marking it as the latest in a series of closures affecting British Columbia's forestry sector in recent years. The ramifications of this decision have sparked responses from local officials, including Prince George Mayor Simon Yu, who expressed concern over the negative impact on the region’s forestry economy. Mayor Yu emphasized the commitment of city officials to work collaboratively with both federal and provincial governments to explore all available avenues to assist the families impacted by this unfortunate announcement.
Forest Minister Ravi Parmar also reacted, describing the news as “heartbreaking” for the workers, their families, and the broader Prince George community. He indicated that he has reached out to the workers' union, Unifor Local 603, in addition to coordinating with the City of Prince George to provide support. The ministries of Forests, Jobs, and Social Development are preparing to deploy resources to aid the affected workforce.
Parmar highlighted that British Columbia's forestry sector is grappling with significant challenges, including tariffs imposed by U.S. President Donald Trump, fluctuating lumber prices that adversely affect sawmill operations, and a steady decline in pulp prices. While these issues do not alleviate the immediate impact of the closure, he stressed the importance of efforts to stabilize and transform the forestry sector in B.C.
The Northwood pulp mill is slated to close later this year following a wind-down process. Canfor CEO Susan Yurkovich acknowledged the profound impact this decision would have on employees, their families, and the local businesses that support the mill’s operations. She emphasized that this closure does not reflect the dedication or hard work of the employees, who have continuously strived to enhance performance amidst challenging conditions.
Kim Haakstad, CEO of the BC Council of Forest Industries, remarked that Canfor’s announcement underscores the urgent need for initiatives aimed at stabilizing the forestry sector. “For too many people across this province, the consequences of inaction for the struggling forestry sector are happening in real time,” she stated. “Every day without long-term predictable and economic access to wood means more families, workers, and communities are put at risk.”

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