B.C. forestry sector faces transition as Canfor closes Prince George pulp mill

Traders Union
All News
Financial News
Canfor Prince George pulp mill closure

Highlights

Canfor is closing its Prince George pulp mill due to global pulp market shifts and fibre supply challenges, impacting workers and the regional economy.
The B.C. government is coordinating with Unifor Local 603, the City of Prince George, and other partners to deploy targeted support, retraining, and transition services for affected workers.
Weak lumber prices, U.S. tariffs, and a sharp decline in pulp prices have intensified pressure on B.C.'s forestry sector, prompting reliance on the Canada-British Columbia Cooperative Prosperity Agreement for sector transition support.

Province outlines worker support response

As reported by Government of British Columbia, citing B.C. Forests Minister Ravi Parmar, the provincial government is responding to Canfor’s decision by contacting Unifor Local 603, the City of Prince George and other community partners, while staff across several ministries prepare support for affected workers.

Parmar says the immediate priority is the impact on employees, families, contractors and the wider Prince George region. He says the ministries of Forests, Jobs and Economic Growth, and Social Development and Poverty Reduction are deploying assistance, with targeted help expected to include individualized support, retraining opportunities and pathways into in-demand jobs.

The province also says local WorkBC centres are providing direct support by working with the employer, the union and workers to assess needs and organize immediate actions for both workers and the broader community. Community transition services are available through a cross-government, one-window approach.

Market pressures deepen regional industry strain

Parmar says Canfor attributes the closure to a structural shift in global pulp markets and ongoing challenges in fibre supply. He adds that B.C.’s forestry sector is also under pressure from tariffs and duties imposed by U.S. President Donald Trump, weak lumber prices affecting sawmill operations and a steep, continuing decline in pulp prices.

The minister says the province plans to rely on federal partners through the recently signed Canada-British Columbia Cooperative Prosperity Agreement to help support the forestry sector transition in the Prince George region. The closure underscores the broader restructuring facing B.C.’s forest industry as governments and communities try to stabilize operations and limit job losses.

In our earlier report on the UK’s Employment Rights Act 2025, we explained how the law is set to give workers unfair dismissal protection much sooner by cutting the qualifying period from two years to six months from January 1, 2027. We also noted that the reform removes the current cap on compensatory awards and is expected to push employers to tighten probation management and documentation as job-protection rights arise earlier.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.