Millar Western Forest Products plans to temporarily curtail production at its Quesnel River Pulp mill in British Columbia, affecting approximately 90 employees.
The curtailment is scheduled to begin at the end of the day shift on Sept. 4. Millar Western intends to resume operations with the day shift on Nov. 1, although the curtailment could be extended if market conditions remain unfavourable.
The company attributed the decision to persistent market weakness. It also cited the impact of significant tariffs affecting Chinese exports. According to Millar Western, these factors have contributed to sustained weak demand, poor pricing and reduced order volumes.
In a letter to employees, Millar Western Executive Chair Karl Meyers said the company would continue to monitor market conditions closely. Affected employees will be able to use accrued vacation time, vacation pay and personal floaters to offset part of the reduction in working hours. Their health and welfare benefits will also remain in place during the temporary layoff.
Millar Western said employees will receive at least seven days’ notice before being recalled to work.
The Quesnel mill has an annual production capacity of approximately 375,000 air-dried metric tonnes of softwood pulp. The temporary curtailment adds to the challenges facing the forestry sector in northern British Columbia, following the permanent closure of Canfor’s Northwood Pulp Mill in Prince George, which affected approximately 300 employees.
Quesnel Mayor Ron Paull emphasized that Millar Western’s announcement remains a temporary measure, while acknowledging that the curtailment could be extended if markets fail to improve. The City is in contact with the company and with the provincial and federal governments about the situation and possible support.
Paull said a permanent closure would have significant consequences for Quesnel’s economy and municipal tax base. The City has developed contingency plans to address a potential loss of revenue from a major industrial employer.
Millar Western Forest Products is a Canadian pulp producer headquartered in Edmonton. It operates pulp mills in Alberta and British Columbia, including the Quesnel River Pulp mill. Atlas Holdings has been the company’s majority shareholder since 2017.
