In Lebel-sur-Quévillon, at the heart of Northern Quebec, the Nordic Kraft pulp mill stands as a model of industrial resilience.
Owned by the family-run group Chantiers Chibougamau, which specializes in wood processing, the modernized facility produces up to 300,000 tonnes of Northern Bleached Softwood Kraft (NBSK) pulp annually. Made from Quebec’s black spruce, this high-quality pulp is prized by global manufacturers of hygiene papers and food packaging.
This move into kraft pulp production is part of a broader strategy to add value to sawmill by-products. Rather than selling wood chips in a highly unstable market—often jeopardizing its core activities—Chantiers Chibougamau chose to transform them, banking on the strong global demand for hygiene products and sustainable packaging. Today, nearly 270 employees run the mill, which primarily relies on chips sourced from local sawmills.
Frédéric Verreault, Executive Vice-President, Corporate Affairs at Chantiers ChibougamauAn ambitious investment program rolled out between 2018 and 2020 allowed for a complete overhaul of the facility, far exceeding initial projections. “The investment blitz wrapped up at the end of 2020, just as we resumed production,” explains Frédéric Verreault, Executive Vice-President, Corporate Affairs at Chantiers Chibougamau. With upgrades including a brand-new ClO₂ production plant and a major focus on automation, 2024 marked the mill’s best production year yet.
Firm Response to U.S. Tariffs
In response to rising U.S. tariffs, Nordic Kraft has adopted a firm yet composed approach to managing its commercial relationships. Despite the difficult context, the company stands its ground. “Our American customers are willing to pay a fair price—one that reflects the true value of the product and the work behind it,” says Verreault. While trade relations with the U.S. remain tense, the company refuses to absorb the costs associated with tariffs and addresses this calmly with its trade partners. “If customers want to maintain their supply, customs duties are now part of the price,” he adds.
Black Spruce Supply: A Key Asset
Securing raw material is a core concern for Nordic Kraft. Black spruce, a typical Quebec fibre, is essential to producing premium NBSK pulp. The company relies on a strong local supply chain and meticulous resource management to ensure consistent, high-quality feedstock. “It’s our greatest asset. If we were based in the American Midwest, we wouldn’t have access to this resource,” notes Verreault.
Asian Spot Market*: A Strategic Option
While the company prioritizes long-term stability, it remains open to opportunities in the Asian spot market—a more volatile but potentially rewarding channel. This market proved vital during the mill’s early operations in 2021, when 100% of production was sold at competitive prices. Today, Nordic Kraft focuses on recurring contracts but continues to monitor developments in the spot market closely. In the context of ongoing U.S. tariffs, it represents a valuable commercial fallback should supply dynamics shift.
A Volatile Market, A Steadfast Company
The pulp and paper industry faces significant economic uncertainty, but Nordic Kraft remains confident in its adaptability. Verreault acknowledges the challenges: “The future is hard to predict. We operate day to day, constantly adjusting. Our strength lies in the quality of our pulp and the reliability of our customer service.” Despite the instability, kraft pulp remains essential to fast-growing sectors like hygiene and food packaging.
Lumber Tariffs Still Looming
Another major concern is the continued imposition of tariffs on lumber, which directly affects the availability of the chips needed for kraft pulp production. “No lumber means no tree processing—and no chips means no pulp,” Verreault explains. The lumber market is unstable, and U.S. trade barriers heighten this vulnerability. Nordic Kraft’s clients, especially in the U.S., are increasingly concerned about the company’s ability to secure a stable chip supply—a challenge that affects the entire industry.
Managing Uncertainty with Confidence
Faced with growing uncertainty, Nordic Kraft is betting on its strengths: a high-quality product, efficient supply management, and strong customer relationships. “Kraft pulp remains a key component of consumers’ everyday needs,” Verreault emphasizes, highlighting the industry’s resilience. In this volatile landscape, the company is preparing to navigate troubled waters with the conviction that quality and reliability will always hold value. The future may be hard to foresee, but it still looks promising for those ready to adapt to new economic realities.
* The Asian spot market refers to transactions—particularly in raw materials such as wood, pulp, or energy—conducted on the spot, meaning immediate payment and prompt delivery.
