Economy

Canfor announces permanent closure of Northwood Pulp Mill

Jul 14, 2026 | 4:21 PM

PRINCE GEORGE, B.C. — Canfor Corporation has announced it will permanently close its Northwood pulp mill in Prince George, a decision that will directly affect approximately 300 employees and mark another significant blow to the city’s forestry sector.

The company made the announcement Tuesday, citing ongoing financial losses, a global oversupply of pulp, and continuing challenges securing fibre needed to operate the mill sustainably.

The closure will reduce Canfor’s annual production of Northern Bleached Softwood Kraft pulp by approximately 300,000 tonnes. The Northwood facility is expected to undergo an orderly wind-down process before shutting down permanently in late 2026.

In a statement, Canfor President and Chief Executive Officer Susan Yurkovich said the decision was a difficult one but necessary given current market conditions.

“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,” Yurkovich said.

She emphasized the closure is not reflective of the work performed by employees at the Prince George operation.

“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.

According to Canfor, the global pulp industry continues to face major challenges as significant new production capacity has come online around the world in recent years. The resulting oversupply has placed downward pressure on pulp prices, making operations like Northwood increasingly difficult to sustain financially.

The company also pointed to long-standing fibre supply issues in British Columbia as a key factor in the decision. Reduced timber availability tied to beetle infestations, wildfires and shrinking harvest levels has created ongoing challenges for forest companies across the province.

Canfor said those conditions have led to a prolonged period of unsustainable losses for its pulp division, and management does not foresee an improvement in the near future.

Canfor says it will work with affected employees during the transition process. The company plans to provide severance packages and will explore opportunities to redeploy workers to other operating locations where possible.

The announcement comes as much of British Columbia’s forestry sector continues to grapple with mill closures, production curtailments and reduced fibre availability. Industry leaders have repeatedly warned that ongoing challenges related to timber supply and market conditions are putting pressure on operations across the province.

Canfor has not provided details on what could happen to the Northwood site after the mill closes, but says the focus for now will be on safely winding down operations and supporting employees through the transition.

More information about the closure process is expected to be released in the coming months as the company prepares for the facility’s shutdown in the fourth quarter of 2026.

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