Why northern mills close: the companies' own reasons

← The Pulp Trade Map

The Pulp Trade Map · Inside the mill

Since 2023, companies in Canada, the US, Finland and Sweden have closed, idled, stopped or announced the closure of nine pulp mills and lines. In British Columbia, Domtar and Canfor each named access to affordable wood fiber as a reason. This post lists what each company said, in its own words, and keeps wood supply facts apart as background.

Published October 27, 2026 · Facts as of October 27, 2026 · 11 min read · Sources listed at the end

Facts as of October 27, 2026. This page states the facts as they stood on that date. Figures, rules and company plans may have changed since publication. We review this guide every six months and update the pages.

1.66 million tonsCombined stated yearly capacity of five Canadian softwood mills closed, idled or set to close since October 2023 (our sum of company and trade press figures) ^1,2,3,8,9

Over 3 million tonsBleached softwood kraft capacity that Arauco said had shut down in the two years before November 2024 ¹⁷

28.5%Fall in Canada's pulp exports from 2015 to 2025, as reported by Canada ²⁰

Nearly 25%Share of the market that was operating cash negative when Fastmarkets assessed it, January 2026 ¹⁵

The 60-second version

What is it?

A mill closure is permanent. An idling is a stop with no set end date. Domtar uses "indefinite idling" for Coosa Pines, for an expected period of more than one year ⁴. Nine mills and lines in the table below are closed, idled, stopped or set to close ^{1,2,3,4,5,6,7,8,9}.

Why does it matter?

Pulp buyers, lenders and producers need to know which mills still supply a grade. Each company gave its own reasons: low pulp prices, oversupply, weak demand in Asia, the cost of wood and old equipment ^1,2,3,4,5,7.

How does it work?

The table gives the company's words for each mill. The trade data show how Canada's exports and output changed. A separate section gives British Columbia wood supply facts as background, and says that no source we found links them directly to the closures.

Myth or fact?

"Northern pulp mills close for one reason."

See the answer

Mostly myth. The companies name several: low pulp prices, oversupply, weak demand from Asia, wood cost or supply, and old equipment. Domtar named both prices and affordable fiber at Crofton and Howe Sound ^2,3. Canfor named oversupply and access to fiber at Northwood ¹.

In this post

1. Which mills have closed or stopped since 2023?
2. What reasons do the companies give?
3. What do the trade data show for Canada?
4. How does Canada's output compare with other producers?
5. What do British Columbia's wood supply facts show?
6. What should readers watch next?

01Which mills have closed or stopped since 2023?

The table lists nine mills and lines. Five are in Canada, one is in the US and three are in Finland and Sweden. Coosa Pines is in Alabama. It is listed because Domtar stated its reasons.

The five Canadian mills have these stated capacities: Espanola 280,000 tons, Terrace Bay 320,000, Crofton 380,000, Howe Sound 380,000 and Northwood 300,000. Together that is 1.66 million tons a year (our sum of company and trade press figures) ^1,2,3,8,9. Three of them are in British Columbia: Crofton, Howe Sound and Northwood. Their stated capacities add up to 1.06 million tons (our sum) ^1,2,3.

The words used for each stop differ. Domtar and Canfor describe Crofton and Northwood as permanent closures ^1,2. Domtar describes Howe Sound as "indefinitely idled" ³. AV Terrace Bay put its mill in "warm idle" for a possible restart ⁹. Metsä Fibre's Joutseno stop is market related, and no permanent closure has been announced ⁷.

Mill tracker

Selected mills and lines closed, idled or stopped, 2023 to 2026

Capacity in tons a year, as stated by the company unless noted. "Idled" is the company's word for a stop with no set end date. Sources: company releases and filings from Stora Enso, Domtar, Metsä Fibre and Canfor ^{1,2,3,4,5,6,7}; Espanola from Packaging Dive ⁸; Terrace Bay from Wood Business and Northern Ontario Business ⁹.

Mill and company	Date	Capacity and grade	What happened, in the company's words
Sunila, Finland. Stora Enso	Sep 2023	375,000, softwood	Stopped in May 2023; permanent closure decided on September 4, 2023. Stora Enso gave no reason specific to Sunila 6.
Espanola, Ontario. Domtar	Oct 2023	280,000, northern softwood (trade press)	Idled for more than a year, "after years of ongoing operating losses," trade press reported 8.
Terrace Bay, Ontario. AV Terrace Bay	Jan 2024	320,000, northern softwood (trade press)	Idled "due to prevailing market conditions." Still idle in May 2026 9.
Crofton, British Columbia. Domtar	Jan 2026	380,000, northern softwood	Closed: "Continued poor pricing for pulp and lack of access to affordable fiber in BC" 2.
Joutseno, Finland. Metsä Fibre	Mar 2026	690,000, softwood (trade press)	Stopped: To match "the current uncertain demand situation in the Asian markets." Lay-off talks began in September 2026 7.
Coosa Pines, Alabama. Domtar	May 2026	About 270,000, fluff pulp	Idled for more than a year: "difficult market conditions, as well as its aged assets" 4.
Skutskär line 3, Sweden. Stora Enso	Q3 2026	Softwood line (no tonnage stated)	Closed: "Market conditions did not support a viable path for the future of L3." The site moves to fluff pulp 5.
Howe Sound, British Columbia. Domtar	Aug 2026	About 380,000, northern softwood	Idled: "Reduced demand from Asia, unprecedented and sustained poor pricing for pulp globally" and "a decline in affordable domestic fiber" 3.
Northwood, Prince George, British Columbia. Canfor	Q4 2026	About 300,000, northern softwood	Closing: Closure announced July 14, 2026; expected to close "in late Q4 2026." Canfor cited oversupply and persistent challenges accessing fiber 1.

02What reasons do the companies give?

Each reason below belongs to the company that gave it. The reasons fall into four groups.

• Low prices and oversupply. Domtar named "unprecedented and sustained poor pricing for pulp globally" at Howe Sound and "continued poor pricing for pulp" at Crofton ^3,2. Canfor said "substantial additional pulp production capacity has come online globally, creating an oversupply in the market" ¹.
• Weak demand. Metsä Fibre stopped Joutseno to match "the current uncertain demand situation in the Asian markets" ⁷. Domtar named "reduced demand from Asia" at Howe Sound ³. Stora Enso said "Market conditions did not support a viable path for the future of L3" at Skutskär ⁵. AV Terrace Bay cited "prevailing market conditions" ⁹.
• Wood cost or supply. Domtar named "lack of access to affordable fiber in BC" at Crofton and "a decline in affordable domestic fiber" at Howe Sound ^2,3. Canfor named persistent challenges accessing fiber ¹. Stora Enso listed rising wood costs among its reasons at Skutskär ⁵.
• Old equipment. Domtar said Coosa Pines was "challenged by difficult market conditions, as well as its aged assets" ⁴.

Other voices describe the same period. Fastmarkets said in January 2026 that "nearly 25% of the market was operating cash negative" ¹⁵. Arauco, a pulp producer, said in November 2024: "Over 3 million ton of BSK capacity shut down last 2 years" ¹⁷. BSK means bleached softwood kraft. Arauco's slide does not list the mills ¹⁷. Fastmarkets wrote in November 2025 that "significant BSK capacity is at risk of closure" ²².

Domtar said Howe Sound cannot overcome "reduced demand from Asia, unprecedented and sustained poor pricing for pulp globally" ³.

03What do the trade data show for Canada?

The data show that Canada exported 9.7 million tons of pulp in 2015 and 6.9 million tons in 2025, a fall of 28.5% ²⁰. China took 46.1% of Canada's 2025 tons and the US took 30.1% ²⁰. US exports were 7.7 million tons in 2015 and 7.5 million tons in 2024, using UN-estimated weights. The chart leaves out US 2018 and 2025 because those weights failed our checks ²⁰.

The fall began before most stops in the table. Canada's exports were 9.66 million tons in 2015 and 7.51 million tons in 2023 ²⁰. Crofton, Howe Sound and Northwood were announced from December 2025 ^1,2,3. No source we found says how much of the export fall each closure caused. For the wider picture, see North America: two big producers, two different stories.

Chart

Canada and US pulp exports, 2015 to 2025

• Canada
• United States (UN-estimated weights)

Million tons. Source: UN Comtrade, as reported by Canada and the US; partner rows; weights that failed checks are left out. 2025 data may be revised. US 2018 and 2025 left out: weights failed our checks.

04How does Canada's output compare with other producers?

FAO data show Canada's pulp production at 17.18 million tons in 2015 and 13.48 million tons in 2024, a fall of 21.5% ²¹. Canada's highest year in this series was 2000, at 26.7 million tons. The 2024 figure is 49.5% below it (our calculation) ²¹. Brazil rose from 17.81 to 26.67 million tons over 2015 to 2024, up 49.7%. Sweden and Finland together went from 22.07 to 21.04 million tons, down 4.7% ²¹. China's figures are FAO estimates ²¹. The Nordics: Europe's pulp makers covers the Nordic side.

One documented reason for the price pressure is new supply. Canfor named new capacity coming online globally ¹. Canfor names no mill. For scale, Suzano's Cerrado mill started on July 21, 2024, with a capacity of 2.55 million tons a year ²³. That is 8.5 times Northwood's 300,000 tons (our calculation) ^1,23. Why new pulp mills are so big explains the scale of these mills.

Chart

Who makes pulp: Brazil, the Nordics, Canada and China, 1961 to 2024

• Brazil
• Sweden and Finland
• Canada
• China (mainland)

Million tons. Source: FAOSTAT Forestry, item 1875 Wood pulp (downloaded October 2026). China's production figures are FAO estimates.

05What do British Columbia's wood supply facts show?

This section is background. No source we found links the mountain pine beetle directly to the 2024 to 2026 closures. The reasons quoted in the table do not include the beetle ^1,2,3. The facts below come from other documents, and each has its own date.

The BC government said in 2012 that 53% of merchantable pine was killed, and its model projected 58% by 2021 ¹⁴. In 2017 the chief forester cut the Prince George allowable annual cut from 12.5 million cubic meters, a level that "had been temporarily increased to harvest mountain pine beetle killed timber", to 8.35 million for five years and then 7.35 million ¹². From 12.5 to 7.35 million is a fall of 41.2% (our calculation). In 2023 the Mackenzie cut went from 4.5 to 2.39 million cubic meters. The government said "More than 50% of the annual harvest included beetle-killed timber" ¹³. That is a fall of 46.9% (our calculation).

The allowable cut and the actual harvest are different numbers. Canfor Corporation's president said in May 2024: "In 2023 the actual harvest was 42 per cent lower than the allowable cut, a level not seen since the 1960s." The Canadian Press reported that he gave beetle outbreaks and wildfires, and policy changes, as causes of the lower harvest ¹¹. Canfor Pulp said in the same month that there is not enough residual fiber to supply the current production capacity of all its operations ¹⁰. Canfor said sawmill closures cut the chip supply ¹⁰. Fastmarkets said in January 2026 that tariffs on Canadian lumber averaging around 45% were behind North American sawmill curtailments, with fewer residual chips for pulp mills ¹⁵.

For how fast trees grow in the north and in Brazil, see The tree race: 7 years in Brazil, 60 to 80 in Finland.

06What should readers watch next?

Fastmarkets said in March 2026 that "the next major wave of capacity expansion arrives in late 2027" ¹⁶. Arauco reported its 3.5 million ton Sucuriú mill 74.4% complete on July 31, 2026, with operations due to start in the fourth quarter of 2027 ¹⁸. A stop leaves costs behind. For Coosa Pines, Domtar recorded $12 million of inventory write-offs and $8 million of severance in the six months to June 30, 2026 ⁴. Lenders in pulp trades look at working capital and commercial risk when a mill stops or a buyer loses a supplier. See working capital and trade finance and trade credit insurance in the Ossiano Trade Finance Guide. For rules and tariffs, see the pulp watch.

• Q4 2027Arauco's Sucuriú mill, 3.5 million tons a year, is due to start operations ¹⁸. Stora Enso expects its Skutskär fluff pulp investment to finish ⁵.
• Late 2027Fastmarkets expects the next major wave of capacity expansion ¹⁶.
• End 2026 or early 2027Fastmarkets reports that APP delayed its new 1.4 million ton hardwood line at OKI to this period ¹⁶.
• Late Q4 2026Canfor expects Northwood to close after an orderly wind-down ¹.
• Oct 2026PaperAge reported that UPM saw a temporary shutdown at Pietarsaari (800,000 tons of softwood and birch pulp) as possible ¹⁹.
• Sep 7, 2026Metsä Fibre began change negotiations on possible temporary lay-offs for about 160 people at Joutseno ⁷.
• Aug 3, 2026UPM's Kaukas pulp mill was due to start about six weeks of market-related downtime, PaperAge reported ¹⁹.

What this means for traders

• If you buy a grade from one northern mill, name a second source of the same grade. Check whether the mill is closed, idled or stopped.
• Read the reason each company gives. Pricing and demand appear at most mills in the table. Access to affordable fiber appears at Crofton, Howe Sound and Northwood.
• Lenders can check what a stop leaves behind. Domtar recorded $12 million of inventory write-offs and $8 million of severance at Coosa Pines ⁴.

Questions traders ask

Why did Domtar close the Crofton mill?

Domtar said that "continued poor pricing for pulp and lack of access to affordable fiber in BC necessitates the closure." It announced the permanent closure on December 2, 2025, and said the mill made about 380,000 air-dried metric tons of northern bleached softwood kraft a year.

Why is Canfor closing the Northwood pulp mill?

Canfor said substantial new pulp capacity has come online globally, creating an oversupply, and that it faces persistent challenges accessing fiber. It announced the closure on July 14, 2026. The mill makes about 300,000 tons a year and is expected to close in late Q4 2026.

Did the mountain pine beetle close these mills?

No source we found links the mountain pine beetle directly to the 2024 to 2026 closures. The companies named pricing, oversupply, demand and access to affordable fiber. The post gives beetle and allowable cut facts separately as background.

What is the difference between a closure and an idling?

A closure is permanent. Idling is the company's word for a stop with no set end date. Domtar describes Coosa Pines as idled for an expected period of more than one year. AV Terrace Bay describes its mill as in warm idle for a possible restart.

How much capacity do the five Canadian mills in the table take out?

The stated capacities add up to 1.66 million tons a year: Espanola 280,000, Terrace Bay 320,000, Crofton 380,000, Howe Sound 380,000 and Northwood 300,000. The Espanola and Terrace Bay figures come from trade press. This is our sum of company and trade press figures.

Read next

• Makers and buyersNorth America: two big producers, two different stories
• Makers and buyersThe Nordics: Europe's pulp makers
• Inside the millWhy new pulp mills are so big
• Inside the millThe tree race: 7 years in Brazil, 60 to 80 in Finland
• Money and rulesPulp watch: every rule and date in one place
• Money and rulesOne ton of pulp, two prices: $1,710 or $722?
• Ossiano Trade Finance GuideHow each trade finance instrument works
• GlossaryTrade finance terms in plain English

Buying or selling pulp across borders? Ossiano Capital works on trade finance for pulp and paper trades.

Start the Conversation

Sources and notes

1. Canfor Corporation, Canfor announces closure of Northwood pulp mill, July 14, 2026; full release text as reproduced by Stockwatch (July 14, 2026) and PaperAge, Canfor to permanently close its Northwood pulp mill in Prince George (July 15, 2026). https://www.canfor.com/newsroom/2026-07-14/canfor-announces-closure-of-northwood-pulp-mill
2. Domtar Corporation, Form 8-K Exhibit 99.1, Domtar to permanently close Crofton Mill, December 2, 2025. https://www.sec.gov/Archives/edgar/data/1381531/000119312525311445/d30819dex991.htm
3. Domtar, Howe Sound mill operations indefinitely idled, Port Mellon, B.C., August 20, 2026. https://www.domtar.com/press_releases/pr-howe-sound-indefinitely-idled/
4. Domtar Corporation, Form 10-Q for the quarter ended June 30, 2026 (Coosa Pines); Domtar, Domtar to idle Coosa Pines, Alabama fluff pulp mill, March 24, 2026. https://www.sec.gov/Archives/edgar/data/0001381531/000119312526350599/ck0001381531-20260630.htm
5. Stora Enso, Stora Enso invests in fluff pulp production increase at its Skutskär business unit and concludes change negotiations for softwood line closure, June 17, 2026; and plan release of May 25, 2026. https://www.storaenso.com/en/newsroom/press-releases/2026/6/stora-enso-invests-in-fluff-pulp-production-increase-at-its-skutskar-business-unit-and-concludes-change-negotiations-for-softwood-line-closure
6. Stora Enso, Stora Enso progresses with restructuring actions to improve long-term competitiveness and profitability, September 4, 2023 (as redistributed by Mercado Financiero). https://www.mercadofinanciero.com/comunicados/noticia-comunicado-stora-enso-progresses-with-restructuring-actions-to-improve-long-term-competitiveness-and-profitability-20230904104400.html
7. Metsä Fibre, Production shutdown at Metsä Group's Joutseno pulp mill, March 3, 2026, and change negotiations release, September 7, 2026; capacity from PaperAge, March 3, 2026. https://www.metsagroup.com/metsafibre/news-and-publications/news/2026/production-shutdown-at-metsa-groups-joutseno-pulp-mill/
8. Packaging Dive, Domtar to idle Espanola, Ontario pulp and paper mill, September 7, 2023. https://www.packagingdive.com/news/domtar-paper-pulp-fiber-mill-closure-layoffs-ontario/692896/
9. Wood Business, AV Terrace Bay temporary idles operations (January 2024); Northern Ontario Business, Terrace Bay pulp mill idled indefinitely; Tree Frog Forestry News, republishing Northern Ontario Business, May 4, 2026. https://www.woodbusiness.ca/av-terrace-bay-temporary-idles-operations/
10. PaperAge, Canfor Pulp to curtail production at Northwood, May 10, 2024. https://www.paperage.com/2024news/05-10-2024canfor-pulp-to-curtail-production-at-northwwod.html
11. The Canadian Press via CTV News BC, Canfor to close sawmill, curtail pulp production citing B.C. policy changes, May 9, 2024. https://bc.ctvnews.ca/canfor-to-close-sawmill-curtail-pulp-production-citing-b-c-policy-changes-1.6881143
12. Government of British Columbia, Ministry of Forests, news release 2017FLNR0325 (Prince George Timber Supply Area allowable annual cut), October 11, 2017. https://news.gov.bc.ca/releases/2017FLNR0325-001717
13. Government of British Columbia, Ministry of Forests, news release 2023FOR0027, Allowable annual cut reduced for Mackenzie Timber Supply Area, May 4, 2023. https://news.gov.bc.ca/releases/2023FOR0027-000662
14. Government of British Columbia, Ministry of Forests, presentation Current status and epidemic projections (mountain pine beetle), May 30, 2012. https://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/forestry/forest-health/mountain-pine-beetle/current_status_epidemic_projections_presentation.pdf
15. Fastmarkets, Critical pulp industry insights: 2026 outlook and supply trends, January 23, 2026. https://www.fastmarkets.com/insights/critical-pulp-industry-insights-2026-outlook-and-supply-trends/
16. Fastmarkets, Global pulp outlook 2026, March 2026. https://www.fastmarkets.com/uploads/2026/03/Global_pulp_outlook_2026-1.pdf
17. Arauco, Investor Day presentation, November 19, 2024. https://arauco.com/wp-content/uploads/2024/11/Investor-Day-Arauco-VF.pdf
18. Arauco, Form 6-K, 2Q 2026 results, August 2026 (Sucuriú progress 74.4% at July 31, 2026; operations scheduled for the fourth quarter of 2027). https://www.sec.gov/Archives/edgar/data/0001004156/000157587226000589/ara030_ex99-1.pdf
19. PaperAge, UPM plans temporary market-related downtime at pulp mills in Finland, June 18, 2026. https://www.paperage.com/2026news/06-18-2026upm-plans-temporary-market-related-downtime-at-pulp-mills-in-finland.html
20. UN Comtrade Plus, exports reported by Canada and the US, HS 470100, 470200, 470311, 470319, 470321, 470329 and 470500, 2015 to 2025; partner rows; weights that failed checks left out; US weights mostly UN estimates; 2025 provisional; downloaded October 2026 and checked by us. https://comtradeplus.un.org/
21. FAOSTAT, Forestry Production and Trade, item 1875 Wood pulp, production, 1961 to 2024; shares and changes are our calculations; downloaded October 2026. https://www.fao.org/faostat/en/#data/FO
22. Fastmarkets, Bryan Smith, Capacity curtailments needed to improve global pulp market conditions in 2026, November 12, 2025. https://www.fastmarkets.com/insights/pulp-capacity-curtailments-global-pulp-market-2026
23. Suzano S.A., Form 6-K, Notice to the Market, Cerrado Project start-up, July 21, 2024. https://www.sec.gov/Archives/edgar/data/909327/000162828024032385/cerradoprojectstrt-up.htm

Trade figures come from UN Comtrade (2015 to 2025, as reported by 10 countries) and FAOSTAT (1961 to 2024), checked and recalculated by us; each chart names whose data it uses. All tons are metric tons. All facts on this page are as of October 27, 2026, the date of publication, and may have changed since. For rules and tariffs, check the pulp watch before you act.

About this post. Prepared for Ossiano Capital. People planned, researched, wrote and checked this post, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.