The Canadian government is offering loans to forestry-related businesses and a sawmill in the country's Alberta province plans to close in the wake of new US tariffs on goods imported across its northern border.
The loans distributed so far aim to help companies adapt to changing market conditions, attract new customers, reduce the reliance on US trade and support workers affected by mill curtailments and closures.
Alberta-based pulp and lumber producer Millar Western Forest Products received a C$100mn ($71mn) loan and Quebec wood-processing firm Arbec Bois d'oeuvre was awarded C$60mn, the Canadian government said.
The Trump administration has threatened to impose 50pc tariffs on US imports of certain Canadian goods — including some forest products — from 19 August, adding 98 new forestry products to the section 338 tariff list.
Millar Western sells 93pc of the hardwood and softwood pulp produced at its three mills in Alberta and British Columbia to Asian markets, particularly China.
Separately, Vancouver-based sawmilling group Canfor plans to permanently close its Fox Creek sawmill in Alberta in the coming weeks, citing difficult market conditions, US tariffs, recent wildfires and reduced fibre supply.
Canfor just a fortnight earlier had announced separate plans to shutter its Northwood pulp mill in Prince George, British Columbia, following a spate of other closures in recent years.
The 120mn board feet/yr Fox Creek sawmill was destroyed in a 2008 fire, then rebuilt in 2011 to process additional fibre after Alberta authorities implemented a strategy to reduce forest stock susceptible to pine beetle infestations.
The combined effect of the pine beetle strategy ending, less wildfire-damaged timber availability and limited demand for wood products contributed to Canfor deciding to shut down the Fox Creek mill, the company said.
