Government and advocates rally around mill workers

The closure will directly impact approximately 300 workers and represents another significant blow to a region that has long relied on forestry as a cornerstone of its economy.

While acknowledging the emotional impact of the announcement, Yu said city officials are already turning their attention toward the practical realities facing Prince George in the months and years ahead.

“We as a city council, working with our economic development team, we want to have impact assessments done and to get ourselves ready,” he said. “In terms of how do we look at the next couple of years and a municipal budget realistically.”

The mill has been an important employer and economic driver in Prince George for decades, contributing not only jobs but also economic activity that extends well beyond the mill gates. The loss of the facility raises concerns about its ripple effects on local businesses, contractors, suppliers and municipal revenues.

As the community absorbs the news, the provincial government says it is mobilizing support for workers affected by the closure.

Forests Minister Ravi Parmar said multiple ministries are preparing to provide assistance in Prince George.

“My colleagues in the Ministry of Jobs and Economic Growth, as well as the Ministry of Social Development and Poverty Reduction, will be sending their teams into Prince George in the days ahead,” Parmar said. “They will be working directly with the union, and with the employer going forward, to ensure that those supports are in place.”

Parmar added that he has already reached out to Unifor Local 603, the City of Prince George and other community partners.

“I have reached out to Unifor Local 603, the City of Prince George and other community partners to offer my support and commitment to their community and workers,” he said.

The minister said the province will also seek federal support through the recently signed Canada-British Columbia Cooperative Prosperity Agreement.

“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,” Parmar said.

According to the province, the closure stems from a combination of market forces and long-standing structural challenges within the forestry sector.

“As noted by Canfor, the closure of this facility is the result of a structural shift in global pulp markets and challenges in fibre supply,” Parmar said.

The minister pointed to several external pressures affecting the industry, including tariffs and duties imposed by the United States, ongoing weakness in lumber markets and declining pulp prices.

“There is no question that B.C.’s forestry sector is facing immense challenges from U.S. President Donald Trump’s tariffs and duties, weak lumber prices affecting sawmill operations, and a steep and continued decline in pulp prices,” Parmar said. “None of that softens today’s news, but it shows why we must keep pushing to stabilize and transform B.C.’s forestry sector.”

The closure has also intensified a debate that has been ongoing in forestry circles for years: how to ensure the long-term competitiveness of British Columbia’s forest industry.

Kim Haakstad, president and CEO of the Council of Forest Industries (COFI), said the focus needs to shift beyond simply helping displaced workers adapt to job losses.

“Too often these days we’re talking about retraining workers,” Haakstad said. “Instead, we have to look at what we can control here in B.C. to make sure that forest companies can be globally competitive, that we have predictable and economic access to fibre and that companies make investments in British Columbia instead of closures.”

Haakstad said the Northwood closure serves as another reminder of the urgent need for coordinated action between governments and industry.

“It underscores the urgency of working together on short-term action to stabilize the sector – ensuring mills stay open, people stay employed, and forestry continues to anchor rural, urban and First Nations communities across B.C.,” she said.

COFI maintains that forestry remains one of the province’s most important economic sectors, supporting nearly 100,000 jobs and generating billions of dollars in economic activity annually.

The organization argues that without predictable and affordable access to fibre, more facilities could face similar challenges.

“Every day without long-term predictable and economic access to wood means more families, workers and communities are put at risk,” COFI noted in its response to the closure.

Access to fibre has long been one of the forestry sector’s most persistent concerns and was specifically cited by Canfor as a contributing factor in the decision to close the mill.

Parmar acknowledged fibre supply remains a major issue but said the situation is complex.

“Fibre supply challenges are a key issue, and it’s really affordable fibre,” he said. “You’ve certainly heard COFI and other companies talk about access to fibre, and they’re very right about that.”

However, Parmar suggested permitting processes are not the primary obstacle.

“We’ve got permits sitting out there right now with fibre not moving, not because of government and permitting, but because of the economics of forestry,” he said.

According to Parmar, companies are often reluctant to pursue harvesting opportunities when market conditions make operations financially unviable.

“When pulp prices are low and lumber prices are low, industry is reluctant to bid on those licences,” he said.

For industry leaders, the changing competitive landscape may require new approaches and fresh thinking about how forestry operates in British Columbia.

With global competition intensifying and economic pressures mounting, Haakstad said it may be time to move beyond traditional solutions and focus on policies that encourage investment and improve competitiveness.

Meanwhile, workers and residents are waiting for more answers.

Canfor executives are expected to return to Prince George in the coming weeks to provide additional details regarding the mill’s shutdown strategy and the process of permanently closing the facility.

For now, the closure represents more than the loss of a workplace. It is another chapter in the ongoing transformation of British Columbia’s forest industry and a stark reminder of the challenges facing communities built around resource-based economies.

As Prince George grapples with the immediate impact, local leaders, industry representatives and governments alike are confronting a broader question that has lingered for years: what does the future of forestry in British Columbia look like, and how can communities dependent on the sector remain sustainable in an increasingly uncertain global market?

** Pattison Media is owned by Jim Pattison Industries, a majority shareholder in Canfor.

by Cheryl Jahn

Government and advocates rally around mill workers

What's Trending