Canfor Shuts Northwood Pulp Mill Amid Global Oversupply
Event summary
- Canfor permanently closes its Northwood pulp mill in Prince George, BC, eliminating ~300,000 tonnes/year of NBSK capacity.
- Approximately 300 employees will be impacted; facility to wind down by late Q4 2026.
- Closure driven by structural shifts in global pulp markets and persistent financial losses.
- Company cites no foreseeable improvement in market conditions as rationale.
The big picture
Canfor's closure reflects the ongoing structural challenges in global pulp markets, where substantial new capacity has created oversupply conditions. The decision highlights how even established players are vulnerable to sustained price pressure and fibre supply constraints. This marks another significant withdrawal from a market that has seen reduced demand from key customers like Chinese paper producers.
What we're watching
- Capacity Adjustments
- How quickly other producers respond to Canfor's exit and whether this accelerates further consolidation in the NBSK market.
- Fibre Access Challenges
- Whether Canfor's struggles with fibre supply signal broader industry constraints that could impact remaining operations.
- Employee Transition
- The effectiveness of Canfor's redeployment efforts and potential labour market impacts in Prince George.