The Government of Canada has announced a $100 million emergency loan to Millar Western Forest Products to help the company strengthen operations, rebuild log inventories and respond to challenging conditions facing the forest products sector.

The funding was announced on July 27 by François-Philippe Champagne, Canada’s Minister of Finance and National Revenue, and will be provided through the federal government’s Large Enterprise Tariff Loan (LETL) facility, administered by the Canada Enterprise Emergency Funding Corporation (CEEFC).

Funding Aims to Strengthen Operations

According to the federal government, the financing will help Millar Western restore its log inventory, support near-term business operations and improve its ability to adapt to changing market conditions.

Millar Western operates three pulp mills located in:

• Slave Lake, Alberta
• Whitecourt, Alberta
• Quesnel, British Columbia

The company produces both hardwood and softwood pulp for international markets.

Supporting Employment in Canada’s Forest Sector

Millar Western currently employs approximately 420 full-time workers and supports around 300 contractors involved in maintenance, forestry operations and consulting services.

François-Philippe Champagne said the funding reflects the federal government’s ongoing efforts to assist Canadian businesses facing difficult global market conditions, including companies operating in the forest industry.

He added that the financial support is intended to help the company navigate current industry challenges while supporting employees and positioning the business for long-term stability.

Strong Focus on Asian Export Markets

Millar Western exports the majority of its production to Asia.

According to the company, approximately 93% of its sales are shipped to Asian markets, with China representing its largest export destination.

Given its export-oriented business model, the company remains closely linked to international pulp demand and global trade conditions.

Financial Support Comes as Forest Sector Faces Market Pressure

The loan highlights the continued challenges facing Canada’s forest products industry, including market uncertainty, trade-related pressures and changing global demand.

For pulp producers with significant export exposure, maintaining stable raw material supplies and operational flexibility remains critical. The federal financing is intended to help Millar Western strengthen its short-term resilience while supporting continued production and employment across its Canadian mill operations.

Last Updated on 30/07/2026 by Jota Machinery