Nanaimo Forest Products will receive $5.5 million in Canadian federal funding to install new equipment and increase production capacity at its Harmac Pacific pulp mill on Vancouver Island, British Columbia.

The investment is intended to improve mill efficiency, reduce production costs and strengthen the competitiveness of Harmac Pacific’s Northern Bleached Softwood Kraft (NBSK) pulp in global markets.

The funding was announced by Gregor Robertson, the federal minister responsible for Pacific Economic Development Canada (PacifiCan), as part of a broader programme supporting British Columbia businesses affected by changing global trade conditions.

Funding Targets Mill Capacity and Efficiency

The $5.5 million will support the installation of new equipment at the Harmac Pacific operation.

According to the funding announcement, the project is expected to increase pulp production capacity while improving operating efficiency and lowering costs.

Specific details about the equipment, the amount of additional capacity or the project completion schedule were not disclosed.

For NBSK producers, improvements in mill productivity and unit production costs can be particularly important in global markets where pulp pricing, exchange rates, fibre availability, energy and transportation costs all influence competitiveness.

Harmac Pacific Competes in Global NBSK Market

Harmac Pacific produces Northern Bleached Softwood Kraft pulp, a market pulp grade valued for the strength characteristics provided by long softwood fibres.

NBSK is used in a range of paper and tissue products where fibre strength is important.

The federal investment is specifically intended to improve the international competitiveness of Harmac Pacific’s NBSK products, making production efficiency an important part of the project.

The mill is also described by the government as one of Vancouver Island‘s major industrial employers, giving the investment both manufacturing and regional employment significance.

Part of $30.5 Million-Plus British Columbia Funding Round

The Harmac Pacific project forms part of more than $30.5 million in Regional Tariff Response Initiative (RTRI) funding announced for 24 businesses and organizations across British Columbia.

The programme is designed to help companies respond to global trade disruptions by:

• Entering or developing new markets
• Improving productivity
• Strengthening supply chains
• Identifying new growth opportunities
• Protecting employment in trade-exposed industries

Forestry is among the sectors targeted by the programme.

Other recipients connected with British Columbia’s forest products sector include BC Wood Specialties Group, Canadian Bavarian Millwork & Lumber, Mahler Machining and PowerWood.

Canadian Forest Sector Faces Trade and Cost Pressure

The funding comes as Canada’s forest products industry continues to operate in a difficult international trade environment.

Pulp and other forest products are heavily dependent on export markets, making producers sensitive to changes in tariffs, transportation costs, exchange rates and overseas demand.

For mills competing internationally, investment in existing manufacturing assets can provide a route to lowering unit costs without relying solely on changes in market prices.

At Harmac Pacific, the planned equipment installation is aimed directly at this challenge by combining higher production capacity with improved operating efficiency.

Industry Outlook

The $5.5 million investment highlights the role of mill modernization in maintaining the competitiveness of Canada’s established pulp manufacturing base.

For Harmac Pacific, the immediate objective is to increase NBSK production capability and reduce costs. For the wider British Columbia forest sector, the project is part of a broader effort to improve resilience as producers respond to trade disruption and changing global markets.

Further information on the equipment being installed and the resulting capacity increase will provide a clearer indication of how significantly the project could affect Harmac Pacific’s production economics and NBSK output.

Last Updated on 12/08/2026 by Jota Machinery