Canada backs Millar Western with $100 million tariff loan for forest operations

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Canada $100M loan for Millar Western

Highlights

Canada granted Millar Western Forest Products Ltd. a $100 million loan via the Large Enterprise Tariff Loan facility to bolster operational resilience amid trade uncertainty.
Millar Western, operating three mills in Alberta and British Columbia with over 420 full-time employees and 300 contractors, will use the funds to rebuild log inventory and stabilize operations.
With 93 percent of sales destined for Asian markets, predominantly China, Millar Western remains highly exposed to international demand amid ongoing pressure in the Canadian forest sector.

Loan support targets operational resilience

As announced by the Government of Canada, Finance Minister François-Philippe Champagne highlights a $100 million loan to Millar Western Forest Products Ltd. through the Large Enterprise Tariff Loan facility. The financing is intended to give the company flexibility to reinforce its near-term business operations, including rebuilding its log inventory, as it responds to shifting market conditions tied to trade uncertainty.

Millar Western operates three mills in Slave Lake and Whitecourt, Alberta, and in Quesnel, British Columbia. The company produces hardwood and softwood pulp and employs more than 420 full-time workers, while also supporting about 300 contractors across maintenance, field-level forestry and consulting services.

Forest sector pressure shapes regional impact

Millar Western is an export-oriented producer, with 93 per cent of its sales going to Asian markets, primarily China. That exposure leaves the business closely tied to international demand trends at a time when the Canadian forest sector is facing prolonged pricing and market pressure.

The federal government presents the loan as part of a broader effort to support Canadian businesses dealing with trade-related disruption. Across Canada, the forest sector directly employs nearly 200,000 people and remains a major economic driver for rural, remote and Indigenous communities, while also supporting activity in related industries and services.

We previously reported on the resurgence of state intervention in private industry as governments respond to supply-chain vulnerabilities, national-security concerns and deindustrialization pressures. That earlier piece highlighted how policymakers are weighing direct ownership and nationalization against market-based alternatives such as grants, loans and regulation to support strategic sectors without eroding competition and accountability.

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