Thunder Bay Pulp and Paper will exit the newsprint segment in the first quarter of 2026, concluding that structural demand erosion has rendered the business no longer viable under current market conditions.
The company will file formal notices with Ontario’s Ministry of Labour to cease newsprint operations at its Thunder Bay site, following several years of sustained demand contraction. Company management cited a 40% decline in North American newsprint consumption since 2022 including an 18% year-over-year reduction in 2025 as the decisive factor behind the move, outweighing all previously explored repositioning and optimization scenarios.
Cost inflation across key inputs further undermined the economics of the operation, accelerating the decision timeline. Approximately 150 positions are expected to be directly affected. Company executives said they are working with unions and government partners to coordinate workforce transition measures, including retraining and employment support programs.
Despite the shutdown of the newsprint line, Thunder Bay Pulp and Paper will maintain its industrial footprint in Northwestern Ontario. The site will continue operating as a single-line softwood kraft pulp mill and as a renewable energy producer supplying electricity to the grid.
Looking ahead, management stated that it intends to collaborate with provincial and federal authorities to advance new investment opportunities tied to the softwood kraft pulp operation, reinforcing the mill’s role as a cornerstone of the regional forest sector. The newsprint paper machine will be placed in a safely idled condition to preserve potential for future conversion.
Company leadership emphasized that the decision represents a strategic refocus rather than a withdrawal. With capital and attention redirected toward pulp and energy operations, Thunder Bay Pulp and Paper aims to stabilize its asset base and position the business for long-term relevance within a restructured North American forest products market.
Thunder Bay Pulp and Paper is a producer of northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp, as well as paper and newsprint. The company was acquired by Atlas Holdings from Resolute Forest Products in 2022.
Source: Thunder Bay Pulp and Paper
