Canfor Corporation has announced it will close its Northwood pulp mill in Prince George, British Columbia. Scheduled for late Q4 2026, the move will permanently remove approximately 300,000 tonnes of annual Northern Bleached Softwood Kraft (NBSK) pulp production capacity and directly affect about 300 employees.
The company said the decision follows an extended period of financial losses at Canfor Pulp, driven by increasingly difficult market conditions. Significant new pulp production capacity has come online globally, creating an oversupplied market and sustained downward pressure on pulp prices. At the same time, ongoing fibre supply constraints have continued to weigh on the operation's profitability.
No near-term market recovery in sight
According to Canfor, no near-term improvement in market conditions is expected, leading the company to make the difficult decision to permanently close the facility.
"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," said Susan Yurkovich, President and Chief Executive Officer of Canfor.
She emphasized that the decision is in no way a reflection of the commitment or hard work of Northwood employees, noting that the team worked tirelessly to improve the mill's performance despite challenging operating conditions.
Support for employees
Canfor will carry out an orderly wind-down of the mill over the coming months. The company said it will provide severance packages to affected employees and will explore opportunities to redeploy employees to other operating locations wherever possible.
The move reflects the ongoing rationalization of pulp production capacity across North America as producers continue to face pressure from weak global pulp prices and constrained fibre supply.
Canfor is a global leader in the manufacture of high-value, low-carbon forest products, including dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets, and green energy. Headquartered in Vancouver, British Columbia, the company operates more than 50 facilities across Canada, the United States, and Europe. Canfor also holds a 77% ownership stake in Vida AB, Sweden's largest privately owned sawmill company. Its shares trade on the Toronto Stock Exchange under the symbol CFP.
