Forestry company Canfor announced Tuesday its plan to permanently close its Northwood pulp mill outside Prince George, B.C., resulting in the loss of 300 jobs.
A statement from the Vancouver-based firm said it was committed to supporting its employees, including providing severance and exploring opportunities to "redeploy" workers to other Canfor locations.
It said the pulp and paper sector continues to face significant challenges, and additional production capacity that has come online globally has created an oversupply in the market, putting downward pressure on prices.
Those factors combined with what the company describes as persistent challenges accessing wood fibre have resulted in a "prolonged period of unsustainable financial losses for Canfor Pulp," the statement said.
With no foreseeable improvement in the outlook, it said Canfor made the "difficult decision" to close its Northwood facility.
It's the latest in a series of closures hitting British Columbia's forest industry and its workers over the last few years.
Prince George Mayor Simon Yu reacted to the news in a statement late Tuesday.
"Prince George’s forestry economy sector is negatively impacted today," he said.
"We here at city hall are committed to (working) with federal and provincial governments to explore every way possible to help those families who have been affected by today’s negative announcement."
Forests Minister Ravi Parmar also issued a statement saying the news was "heartbreaking" for workers, their families and the entire Prince George community.
Parmar said he had reached out to the workers' union, Unifor Local 603, as well as the City of Prince George and others to offer his support.
Staff in the ministries of Forests, Jobs and Social Development would be deploying support to affected workers, the statement said.
"There is no question that B.C.'s forestry sector is facing immense challenges from U.S. President Donald Trump's tariffs and duties, weak lumber prices affecting sawmill operations, and a steep and continued decline in pulp prices," Parmar said.
"None of that softens today's news, but it shows why we must keep pushing to stabilize and transform B.C.'s forestry sector."
Northwood is expected to close later this year following a wind-down process.
Canfor CEO Susan Yurkovich said the company recognized the "incredibly difficult news" would have a significant impact on workers, their families, the businesses that support the mill's operation and the communities where Canfor operates.
"This decision is in no way a reflection of the dedication or hard work of our employees," she said in the company's statement. "The team at Northwood has worked tirelessly to improve performance, navigating challenging conditions to support their operation and we are grateful for their efforts."
Kim Haakstad, CEO of the BC Council of Forest Industries, said Canfor's news underscored the urgency of working to stabilize the forest sector.
"For too many people across this province, the consequences of inaction for the struggling forestry sector are happening in real time," she said in a statement.
"Every day without long-term predictable and economic access to wood means more families, workers and communities are put at risk."
Picture Courtesy: THE CANADIAN PRESS/Darryl Dyck
