The Government of Canada has announced a $100 million loan to Millar Western Forest Products Ltd. to help the company navigate ongoing global trade disruptions affecting the forest sector.
The funding, delivered through the Large Enterprise Tariff Loan (LETL) facility, was announced July 27 by Finance Minister François-Philippe Champagne. It is intended to help the company strengthen its near-term operations, including rebuilding log inventories, while adapting to evolving market conditions and protecting jobs.
Millar Western operates three pulp mills in Slave Lake and Whitecourt, Alberta, and Quesnel, British Columbia. The company employs more than 420 full-time workers and supports approximately 300 contractors across forestry, maintenance and consulting activities. As an export-oriented producer, it ships 93% of its pulp to Asian markets, primarily China.
The Canadian forest sector continues to face pressure from ongoing trade disputes, particularly between the United States and China, which have weakened market conditions for softwood lumber, pulp and other forest products. These challenges have created economic uncertainty across the industry's supply chains and forest-dependent communities.
According to the federal government, the loan will provide Millar Western with greater flexibility while supporting broader efforts to maintain the competitiveness of Canada's forest sector, which directly employs nearly 200,000 people.
Champagne said the loan would help the company navigate challenging market conditions, protect jobs and strengthen its long-term position. Minister of Energy and Natural Resources Tim Hodgson said the support reflects the government's broader objective of stabilizing the industry while positioning it for future growth.
The loan will be provided by the Canada Enterprise Emergency Funding Corporation, which administers the Large Enterprise Tariff Loan program. Introduced in March 2025, the $10 billion financing facility was created to support large Canadian companies affected by actual or potential tariffs and related trade measures.
Millar Western Forest Products Ltd. produces hardwood and softwood pulp from mills in Alberta and British Columbia. Headquartered in Edmonton, Alberta, the company serves international markets, exporting most of its production to Asia for paper, tissue and specialty applications.
