The Government of Canada is providing C$5.5 million in funding to Nanaimo Forest Products to support the installation of new equipment at the Harmac Pacific pulp mill on Vancouver Island.
According to Pacific Economic Development Canada, the equipment will increase the mill’s production capacity while improving efficiency and reducing costs. The project was approved in February 2026.
The government did not specify the type of equipment involved, the expected capacity increase or the installation schedule.
The funding is part of more than C$30.5 million announced for 24 businesses and organizations across British Columbia. The investments are being made through the Regional Tariff Response Initiative, which supports companies affected by global trade disruptions as they improve productivity, lower costs and diversify their markets.
Operated by Nanaimo Forest Products, Harmac Pacific produces Northern Bleached Softwood Kraft (NBSK) pulp primarily for markets in Asia, the United States and Europe. The Nanaimo mill has an annual production capacity of 380,000 tonnes.
According to Harmac Pacific, the site employs more than 350 people and supports over 1,000 regional jobs in industries including logging, sawmilling, transportation and construction.
The federal government said the project will help maintain forestry jobs and strengthen one of Vancouver Island’s major industrial employers. The investment is also intended to improve the competitiveness of pulp produced in British Columbia in global markets.
