300 jobs lost as Canfor closes Northwood Pulp Mill in Prince George

300 jobs lost as Canfor closes Northwood Pulp Mill in Prince George

Company says it is facing 'unsustainable financial losses'

Canfor has closed another mill in Prince George, B.C., this time impacting roughly 300 jobs.

The company announced Tuesday that it will be shutting down Northwood pulp, due to what the company describes as "unsustainable financial losses."

"The pulp and paper sector continues to face significant challenges, including a structural shift in global pulp markets. Substantial additional pulp production capacity has come online globally, creating an oversupply in the market and downward pressure on global pulp prices," Canfor said in a written statement.

"With no foreseeable improvement in the outlook, Canfor has made the difficult decision to close its Northwood facility."

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The company said the shutdown will be finalized toward the end of 2026.

Kim Haakstad, president and CEO of the B.C. Council of Forest Industries, said the shutdown shows the need to urgently stabilize the forestry sector in the short term to keep mills open and people working.

"For too many people across this province, the consequences of inaction for the struggling forestry sector are happening in real time," Haakstad said in a statement.

She called on the provincial and federal governments to act urgently on the Forest Sector Transformation Task Force's recommendations — specifically regarding predictable access to wood.

Forests Minister Ravi Parmar said he had reached out to the affected union and the City of Prince George, and that multiple government ministries would be “deploying support to affected workers.”

"We will be leaning on our federal government partners, through the recently signed Canada-British Columbia Cooperative Prosperity Agreement, to help support the transition the forestry sector is facing in the Prince George region,” he added.

The company also blamed difficulty accessing affordable fibre supply, an ongoing complaint from other forestry companies.

The announcement follows multiple other closures or curtailments in recent years that have resulted in thousands of lost jobs, including at other Canfor facilities in Prince George and in neighbouring communities including Houston, Bear Lake and Vanderhoof.

Why a lack of access to timber is leading to B.C. mill closures, job losses

B.C. gov't proposes legislative changes to increase wood fibre supply

In response to the closures, the B.C. government has proposed legislative changes to bolster access to wood fibre, including timber damaged by wildfire, insects and windstorms.

In March, the Ministry of Forests said the changes would potentially increase the supply of fibre in B.C. by as much as 17,700 truckloads providing what Forests Minister Ravi Parmar called "a steady stream of timber" for companies.

Call for changes in forest management

However, not everyone believes that forestry in the region is unsustainable.

Last week, the Saik'uz First Nation and District of Vanderhoof called on the province to reduce the power that multinational corporations like Canfor have in managing local forests, saying they are beholden to global market forces that don't necessarily result in the best outcomes for local communities.

District of Vanderhoof Mayor Kevin Moutray said timber harvested from the region is being transported hundreds of kilometres away for processing, depriving local communities of the economic benefits.

'We don't want wood leaving this community': Vanderhoof and Saik'uz First Nation call for forestry changes

"When they leave, that fibre should not be rolling down the road to another community, that should be staying here and keeping the mill that we have left open," said Moutray. "We can right-size the forest industry and make this forest industry work but it needs to keep that fibre local."

Saik'uz First Nation Chief Priscilla Mueller said they are developing a long-term land-use plan designed to create a sustainable, locally-owned forest industry, including mills.

"What we're looking at is we want that fibre to stay in our area. If the mills shut down, we don't want the wood leaving this community," she said.

With files from Catherine Garrett, Simon Little and The Canadian Press