Canfor Closes Prince George Pulp Mill Resulting in 300 Job Losses

Forestry giant Canfor has permanently closed its Northwood pulp mill outside Prince George, B.C., eliminating 300 jobs and intensifying concerns about the sustainability of the province’s forestry industry. The decision, announced July 14, 2026, comes amid global market pressures, chronic fibre supply shortages, and financial losses that the company described as “prolonged and unsustainable.”

Reasons Behind the Closure

Canfor cited a combination of global market oversupply, declining pulp prices, and persistent challenges accessing wood fibre as the primary drivers of the closure. The company stated that additional production capacity worldwide has created downward pressure on prices, while beetle infestations, wildfires, and reduced harvest levels in B.C. have constrained timber availability. “The pulp and paper sector continues to face significant challenges,” Canfor CEO Susan Yurkovich said in a statement, noting that these factors led to a prolonged period of unsustainable financial losses for Canfor Pulp.

The closure aligns with broader industry trends. Over the past few years, B.C.’s forestry sector has seen multiple mill shutdowns, including at other Canfor facilities in Prince George and neighboring communities. Kim Haakstad, CEO of the B.C. Council of Forest Industries, called the move a stark reminder of the urgent need to stabilize the sector, emphasizing that predictable access to wood fibre is critical to keeping mills open and people working.

Community Impact and Calls for Action

The closure has drawn sharp criticism from local leaders and Indigenous groups, who argue that the province’s forestry policies favor multinational corporations over community interests.

B.C. Forests Minister Ravi Parmar acknowledged the “heartbreaking” impact of the closure, vowing to deploy government support for affected workers. He cited recent legislative changes aimed at increasing fibre availability, including access to timber damaged by wildfires and insect outbreaks. We will be leaning on our federal government partners… to help support the transition the forestry sector is facing, Parmar said, though he also highlighted external pressures like U.S. tariffs and weak lumber prices as contributing factors.

Worker Support and Next Steps

Canfor pledged to provide severance packages and explore “redeployment” opportunities for workers. The company plans to wind down operations by late 2026, with details about the site’s future yet to be announced. Yurkovich emphasized that the closure was not a reflection of employee performance, stating, “The team at Northwood has worked tirelessly to improve performance, navigating challenging conditions to support their operation.”

Local unions and advocacy groups have urged the government to accelerate its Forest Sector Transformation Task Force recommendations, which include reforms to forest management and market access. For too many people across this province, the consequences of inaction are happening in real time, Haakstad said, calling for immediate action to prevent further job losses.

Broader Implications for B.C.’s Economy

The closure underscores the fragility of B.C.’s forestry-dependent communities, which have already lost thousands of jobs in recent years.

As the Northwood mill prepares for its wind-down, stakeholders remain divided on the path forward. While some advocate for government intervention, others stress the need for market-driven solutions. For now, the closure serves as a stark reminder of the challenges facing an industry caught between global market forces and local economic needs.

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