The Northwood Pulp Mill in Prince George is shut down permanently, Canfor announced Monday, affecting approximately 300 employees.
Canfor cited “significant challenges” in the pulp and paper sector as reasons for the facility’s closure, specifically mentioning a shift in global pulp markets. Canfor said additional pulp production capacity worldwide has created an oversupply in the market and lowered prices.
That and struggles to find fibre for production have “resulted in a prolonged period of unsustainable financial losses,” according to Canfor.
Approximately 300 workers will be looking for new employment after Canfor announced the closure of Northwood Pulp Mill in Prince George, continuing a trend of pulp facilities in B.C. shutting down.
Canfor president and CEO Susan Yurkovich said the company recognizes the impact this closure has on the mill’s employees and the community of Prince George as a whole.
“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,” she said, in a statement.
“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.”
Northwood Pulp Mill is expected to wind down production in late 2026 as it moves toward permanent closure, Canfor said.
‘Lives have been turned upside down’
In a statement, Ravi Parmar, B.C.’s minister of forests, called the announcement “heartbreaking,” and said the ministry has reached out to the city of Prince George and the union representing the mill’s workers to offer and deploy support.
“We will be leaning on our federal government partners, through the recently signed Canada-British Columbia Cooperative Prosperity Agreement, to help support the transition the forestry sector is facing in the Prince George region,” he said.
“My focus is on the people whose lives have been turned upside down by this news. The people of British Columbia stand with you during this difficult time.”
Speaking to the struggles facing B.C.’s forestry sector, Parmar pointed to tariffs and duties imposed by U.S. President Donald Trump, weak lumber prices, and the steep decline in pulp prices.
“None of that softens today’s news, but it shows why we must keep pushing to stabilize and transform B.C.’s forestry sector,” he said.
Standard operations at Northwood Pulp Mill are expected to wind down but continue until late 2026, Canfor said in its announcement Tuesday, noting that timeline is subject to change.
The B.C. Council of Forest Industries issued a statement in response to Northwood’s closure as well. President and CEO Kim Haakstad took the opportunity to call on both the provincial and federal governments to consider and implement recommendations made by the Forest Sector Transformation Task Force in April, which focus on “improving access to wood and utilization of sawmill residuals.”
“For too many people across this province, the consequences of inaction for the struggling forestry sector are happening in real time,” she said.
“Forestry supports nearly 100,000 good jobs, generates billions in economic activity, and underpins reconciliation and rural stability. Every day without long-term, predictable and economic access to wood means more families, workers, and communities are put at risk.”
This closure comes just over seven months after Domtar announced the permanent closure of a pulp mill in Crofton, B.C., leaving 350 employees out of work—citing the same poor market conditions as the primary reason for closure.