Could Northwood have been saved? Howe Sound mill deal reignites debate

“If this deal isn’t offered up to some of the other mills, that becomes a problem.”

Those are the words of Public and Private Workers of Canada President Chuck Leblanc after a deal was struck by the provincial government and Domtar to keep its Howe Sound mill operating, keeping 400 workers employed.

The deal was made prior to the election being called by incumbent premier David Eby according to the Ministry of Forests office.

When asked if a similar deal would keep Canfor’s Northwood Pulp Mill chugging along in Prince George, Leblanc stated that would be a tough call.

“I don’t know whether this help would be enough to save Northwood, and that’s a Canfor decision to be made, but you’re always hopeful that it’ll provide enough relief for the remaining mills that we’re not going to see any more mill closures.”

In July, Canfor announced the closure of the Northwood facility, leaving 300 people out of work.

Earlier this month, Excel Transport announced it expects to lose 90 percent of its local workforce due to the shut down.

As a result, it will not continue as a hauling contractor for the forestry company.

Excel is not declaring a permanent shut down but will spend the coming months reviewing operations, adjusting its fleet and workforce while pursuing new contract opportunities across the region’s resource sector.

Leblanc also believes the province has opened a can of worms they might not be able to close.

“Now that this deal has been struck and if it isn’t offered up to some of the other mills, that becomes a problem with the rest of the mills. They’re—they’re struggling just as hard as the Domtar mill. They also need some relief.”

“At the end of the day, the provincial government needs to also recognize that every other pulp company within BC is also struggling. And I’m hoping that this paves the way to provide relief to our other companies like Canfor and Mercer, Kruger, and others.”

The deal between Domtar and the province has led to strong social media reaction from city councillor Brian Skakun and Mayor Simon Yu who submitted a letter to the government asking that Northwood get the same treatment.

In a statement to Vista Radio, Canfor noted they are seeking government supports to strengthen the Intercon and Specialty Paper operations in PG.

Canfor, along with the broader forest industry, has been advocating for years to address the critical shortfall of economic fibre needed to sustain our manufacturing facilities and forestry jobs across BC. It has been heartbreaking to see the steep decline in reliable, economic fibre supply, increasing regulatory complexity, policy choices and punishing US duties. Together, these pressures have created cascading challenges for the forest sector across the Interior and the province. These deteriorating conditions have forced operators, including Canfor, to make difficult decisions to curtail or permanently close operations. The resulting mill closures have impacted hundreds of workers, their families and communities.

BC’s forest industry is a highly integrated ecosystem. As sawmills have closed and lumber production has declined, the resulting loss of residual fibre has increasingly put pressure on pulp and paper operations in BC.

With respect to our pulp operations in the region, we are intensely focused on ensuring a strong future for Intercon and Specialty Paper operations in Prince George. We have met with the BC government on numerous occasions, including last month, just prior the election call, to seek support to strengthen Intercon and Specialty Paper. We have also submitted a request for funding to the Canada Strong Fund to support investments in Intercon and Specialty Paper.

The challenges facing Howe Sound are not unique. All pulp mills in BC are facing the same structural challenges, and each plays a critical role in the integrated the forestry ecosystem of its region. As such, our expectation is that any provincial support provided to Howe Sound Pulp should be made available to other pulp operations in the province. We have made this clear to the Minister and to government officials, and we are continuing to seek support for our operations.

Intercon is critically important for the integrated forest sector in Prince George. Its success supports not only the operation and its employees, but the broader network of sawmills, forestry operations, suppliers and communities that depend on a functioning regional forestry ecosystem.