BURST
The Northwood Pulp Mill in Prince George will close with the loss of 300 jobs.
On Tuesday, Canfor Corporation President Susan Yurkovich said the forestry company’s pulp division had been making unsustainable losses for too long.
This was due to a global oversupply of pulp, which was leading to lower prices, and not enough local fibre to process.
“The pulp and paper sector continues to face significant challenges, including a structural shift in global pulp markets,” Yurkovich said. “Substantial additional pulp production capacity has come online globally, creating an oversupply in the market and downward pressure on global pulp prices.
“Combined with the persistent challenges accessing fibre, these factors have resulted in a prolonged period of unsustainable financial losses for Canfor Pulp. With no foreseeable improvement in the outlook, Canfor has made the difficult decision to close its Northwood facility.”
The Prince George facility was producing around 300,000 tonnes of high-quality bleached pulp every year. The main global competitor for pulp products now is Brazil, which has seen new facilities built processing quick-growing eucalyptus.
“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,” Yurkovich said.
“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.”
In May 2024, Canfor closed a sawmill in Bear Lake, cut production at Northwood and suspended plans to build a new mill in Houston. The closure of the Bear Lake sawmill cost 180 jobs. The production cut at Northwood cost 220 jobs.
B.C. Minister of Forests Ravi Parmar said he hoped the government could help find work for the displaced employees.