Economy

Canfor Northwood closure sparks calls for urgent action as Province, industry respond

Jul 15, 2026 | 7:45 AM

PRINCE GEORGE, B.C. — The closure of Canfor’s Northwood Pulp Mill has prompted an outpouring of concern from industry leaders, government officials and community stakeholders, all warning of the growing challenges facing British Columbia’s forestry sector and the impact on workers and families in northern communities.

The shutdown, announced Tuesday, marks another significant setback for an industry that has long served as an economic cornerstone in Prince George and across the province. While the immediate focus remains on supporting affected employees, both industry and government leaders say the closure also highlights deeper structural issues that continue to threaten the future of forestry in British Columbia.

BC Council of Forest Industries (COFI) President and CEO Kim Haakstad said the closure is another difficult moment for forestry-dependent communities.

“COFI extends our deepest concern to the workers, families, and communities affected by today’s closure announcement,” Haakstad said in a statement released Tuesday.

She said the consequences of ongoing challenges in the forestry sector are being felt across the province and called for immediate measures to help stabilize the industry.

“While this is a difficult day, it also 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 BC,” Haakstad said.

COFI is urging both the provincial and federal governments to move quickly on recommendations from the Forest Sector Transformation Task Force, particularly measures aimed at improving access to fibre and maximizing the use of sawmill residuals.

The industry organization noted that forestry remains a major contributor to British Columbia’s economy, supporting nearly 100,000 jobs and generating billions of dollars in economic activity each year.

According to Haakstad, long-term access to a predictable and economically viable fibre supply remains one of the sector’s most pressing concerns.

“Every day without long-term predictable and economic access to wood means more families, workers, and communities are put at risk,” she said.

The provincial government also acknowledged the significance of the closure, with Forests Minister Ravi Parmar describing the news as “heartbreaking” for workers, contractors and the broader Prince George region.

“Today’s news that the Canfor Northwood pulp facility will be closing is heartbreaking for the workers, their families, contractors and the entire Prince George community and region,” Parmar said in a statement.

The minister said he has already reached out to representatives from Unifor Local 603, the City of Prince George and other community partners to offer support and discuss assistance for impacted workers.

Provincial staff from the ministries of Forests, Jobs and Economic Growth, and Social Development and Poverty Reduction will also be deployed to help coordinate services and support programs.

The provincial government says assistance will include individualized support, retraining opportunities and help connecting displaced workers with jobs in sectors where demand remains strong.

WorkBC centres in the region will play a key role in helping workers navigate the transition by assessing individual needs and linking employees to available resources.

“The immediate focus is support for workers, including individualized support, retraining opportunities and helping workers pivot to in-demand opportunities,” the ministry said.

The province also pointed to community transition services that provide a centralized, cross-government approach for workers and communities dealing with major economic disruptions.

Parmar said the government will also look to federal partners for assistance through the recently signed Canada–British Columbia Cooperative Prosperity Agreement.

“We will be leaning on our federal government partners … to help support the transition the forestry sector is facing in the Prince George region,” he said.

The closure comes amid a difficult period for B.C.’s forest industry. Parmar cited a combination of factors, including persistent U.S. tariffs and duties, weak lumber markets, declining pulp prices and ongoing fibre supply challenges.

“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,” he said.

Industry observers have repeatedly pointed to shrinking timber supplies caused by wildfires, mountain pine beetle impacts and changes to available harvest levels as major pressures affecting mill operations throughout the province.

Both COFI and the provincial government emphasized that the closure reinforces the need for long-term solutions to ensure the industry remains competitive in global markets.

For Prince George, a city with deep roots in forestry, the closure represents more than the loss of an industrial facility. It also raises concerns about the broader economic ripple effects on contractors, suppliers, local businesses and families whose livelihoods are tied to the sector.

“My focus is on the people whose lives have been turned upside down by this news,” Parmar said. “The people of British Columbia stand with you during this difficult time.”

As workers begin grappling with the implications of the closure, industry leaders and government officials agree on at least one point: urgent action will be needed if British Columbia hopes to prevent further losses and secure a sustainable future for its forestry sector.

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