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Canfor Pulp curtails production line in Prince George due to fibre shortage

Canfor Pulp Products Inc. has announced the indefinite curtailment of one production line at its Northwood facility in Prince George, B.C. This decision stems from a decline in economic fibre availability in the region, leading to a reduction of approximately 300,000 tonnes of market kraft pulp annually.

Kevin Edgson, president and CEO of Canfor Pulp, cited the persistent shortage of economic fibre, exacerbated by policy choices and regulatory complexities, as the primary reason for the curtailment. The closure or curtailment of sawmills in the Prince George region has led to a decrease in available chips for pulp operations.

Currently operating two pulp production lines at Northwood and one at the nearby Intercon facility, the company plans to continue operating both Northwood lines temporarily, followed by an orderly wind-down process for one line in the third quarter. This reduction will affect around 220 jobs across Canfor Pulp.

Edgson expressed regret over the decision’s impact on employees, families, local businesses, and the community:

“We are frustrated and disheartened to have to make this decision and know it has a significant impact on our employees, their families, local businesses and the community. We have set up a transition team and will work with our union to support our employees as we plan an orderly wind-down.”

The company will collaborate with unions to support affected employees through a transition period.

Following the curtailment, Canfor Pulp will have an annual capacity of 480,000 tonnes of market pulp, while its specialty paper facility in Prince George will maintain an annual capacity of 140,000 tonnes of kraft paper.