Canada's forest sector has been impacted by ongoing trade disputes, particularly between the U.S. and China, which has created weak market conditions for softwood lumber, pulp, and other forest products resulting in ongoing economic uncertainty for workers and their families.
Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, highlighted a $100 million loan to Millar Western Forest Products Ltd. through the Large Enterprise Tariff Loan (LETL) facility. As part of the Government of Canada's efforts to support and protect Canadian businesses facing trade-related uncertainty, this loan will provide the company with the flexibility to strengthen its near-term operations, including rebuilding its log inventory, and adapt to evolving market conditions while protecting jobs.
Millar Western produces high-quality hardwood and softwood pulp from three mills in Slave Lake and Whitecourt, Alberta, and Quesnel, British Columbia. The company employs more than 420 full-time workers and supports approximately 300 contractors in maintenance, field-level forestry and consulting services. As an export-oriented business, Millar Western ships most of its products internationally, with 93 per cent of its sales going to Asian markets, primarily China.
Canada's forest sector is a cornerstone of Canada's economy. For generations, Canada's forests have supported hundreds of thousands of jobs in communities across Canada. Today, the sector directly employs nearly 200,000 Canadians and serves as a key economic driver for many rural, remote and Indigenous communities. The sector also creates significant positive spin-off effects in related industries and services.
