PRINCE GEORGE, British Columbia — Canfor will permanently close its Northwood pulp mill in Prince George by the end of 2026, citing unsustainable financial losses, weak global pulp markets and ongoing fibre supply challenges.

The closure is expected to affect approximately 300 employees, marking another significant setback for British Columbia’s forest industry as producers continue to face declining profitability and structural changes in global pulp markets.

Global Oversupply Pressures Pulp Producers

Canfor said increasing pulp production capacity worldwide has created a prolonged oversupply, placing downward pressure on global pulp prices and eroding mill profitability.

According to the company, the market outlook shows no near-term signs of improvement, leading to the decision to permanently shut down the Northwood facility.

The announcement adds to a series of mill closures and production curtailments across British Columbia in recent years, reflecting broader challenges facing Canada’s pulp and paper sector.

Fibre Supply Remains a Major Challenge

In addition to weak market conditions, Canfor identified limited access to affordable fibre as a key factor behind the closure.

Fibre availability has become an increasingly important issue for forestry companies across British Columbia following years of wildfire damage, mountain pine beetle impacts and reduced timber harvests.

The provincial government has proposed legislative changes aimed at increasing access to wood fibre, including recovering timber affected by wildfires, insects and windstorms.

Industry Calls for Government Action

The B.C. Council of Forest Industries said the closure highlights the urgent need for government action to stabilize the forestry sector and improve long-term fibre security.

Industry leaders continue calling for implementation of recommendations from Canada’s Forest Sector Transformation Task Force, including measures to improve predictable timber access and strengthen industry competitiveness.

Government Announces Worker Support

British Columbia Forests Minister Ravi Parmar said the provincial government is working with local officials, labour representatives and federal partners to support affected workers and communities.

The province also plans to leverage the recently signed Canada–British Columbia Cooperative Prosperity Agreement to help manage the ongoing transition within the forestry sector.

Communities Push for Local Processing

The announcement comes as several northern communities advocate for more locally focused forest management.

Leaders from the Saik’uz First Nation and the District of Vanderhoof recently called for greater local control over timber resources, arguing that logs harvested in the region should be processed closer to where they are produced to preserve employment and strengthen regional economies.

The closure of Northwood further underscores the mounting pressure facing British Columbia’s pulp and paper industry as companies balance global market conditions with domestic fibre supply constraints.

Last Updated on 15/07/2026 by Jota Machinery