Canfor has announced the permanent closure of its Northwood pulp mill near Prince George, British Columbia, a decision that will result in the loss of approximately 300 jobs and mark another setback for the province’s struggling forestry industry.
The Vancouver-based company said it will support affected employees through severance packages while also exploring opportunities to redeploy some workers to other Canfor operations.
According to the company, the pulp and paper industry continues to face significant challenges. Increased production capacity around the world has created an oversupplied market, driving prices lower, while ongoing difficulties securing wood fibre have further strained operations.
Canfor said these factors have led to a prolonged period of unsustainable financial losses for Canfor Pulp, leaving the company with no realistic path to improving the mill’s outlook.
As a result, the company said it made the difficult decision to permanently shut down the Northwood facility. The closure is expected to take place later this year following a gradual wind-down of operations.
Canfor President and CEO Susan Yurkovich acknowledged the impact the decision will have on employees, their families and the wider community.
“This decision is in no way a reflection of the dedication or hard work of our employees,” Yurkovich said. “The team at Northwood has worked tirelessly to improve performance, navigating challenging conditions to support their operation, and we are grateful for their efforts.”
The closure adds to a growing list of mill shutdowns that have affected British Columbia’s forestry sector in recent years.
Prince George Mayor Simon Yu described the announcement as a significant blow to the local economy, saying the city will work alongside provincial and federal governments to identify ways to support the workers and families affected by the closure.
B.C. Forests Minister Ravi Parmar also called the news “heartbreaking” for employees and the Prince George community. He said he has reached out to Unifor Local 603, the City of Prince George and other stakeholders to offer provincial support.
Parmar added that staff from the Ministries of Forests, Jobs and Social Development will provide assistance to workers impacted by the closure.
He also pointed to broader challenges facing the sector, including U.S. tariffs and duties, weak lumber prices affecting sawmills and the continued decline in global pulp prices.
“None of that softens today’s news,” Parmar said, “but it shows why we must keep pushing to stabilize and transform B.C.’s forestry sector.”
Kim Haakstad, CEO of the BC Council of Forest Industries, said the announcement highlights the urgent need for long-term solutions to strengthen the province’s forest sector.
She warned that without predictable and economically viable access to wood supplies, more forestry operations could be placed at risk, leading to additional job losses and economic hardship for communities across British Columbia.
