Ottawa Provides $100M Loan to Western Canadian Pulp Producer Facing Tariff Pressures

Liam O'Connell

7/29/20261 min read

The federal government is providing a $100-million loan to a Western Canadian forest products company as the industry continues to face tariffs and uncertainty in global markets.

Finance Canada said the funding is being extended to Millar Western Forest Products, which operates three pulp mills across British Columbia and Alberta.

The loan is intended to help the company address immediate operational needs, including rebuilding its inventory of logs.

Company Employs Hundreds of Workers

Millar Western primarily exports its products and directly employs approximately 420 workers.

The company also supports hundreds of additional jobs through maintenance, consulting and other services connected to its operations.

Ottawa said the loan will help protect those jobs while giving the company greater flexibility to adapt to changing market conditions.

Canada’s forest sector has been directly affected by steep U.S. tariffs, while the domestic softwood lumber industry is also facing pressure from broader international trade disputes.

Funding Comes From $10B Tariff Loan Program

Millar Western is one of a small number of companies to receive financing through Ottawa’s Large Enterprise Tariff Loan facility.

The $10-billion program was created to assist large Canadian businesses affected by tariffs and trade disruptions.

The facility is also supporting Algoma Steel in Ontario as the company works to retool its products and reduce its reliance on customers in the United States.

The federal government said the Millar Western loan is aimed at strengthening the company’s near-term financial position, preserving employment and helping its operations remain competitive during a period of continued uncertainty for Canada’s forestry industry.

News

Stay updated with the latest BC news stories, subscribe to our newsletter today.

SUBSCRIBE

LINKS

Ethics