$20 million will help Mercer Peace River modernize, protect good jobs and compete as Canada stands up to unjustified U.S. tariffs
Since commencing operations in 1990, the Peace River pulp mill has become an anchor of northern Alberta's economy. The mill directly employs 360 people and supports approximately 3,000 jobs across Alberta's forest sector supply chain, including through long-standing relationships with local forest sector operators and sawmills. Its growth reflects the significant benefits that free trade with the United States has delivered for businesses, workers and communities across Canada.
Last week, Washington imposed additional unjustified tariffs on Canadian goods, creating significant uncertainty for workers, businesses and communities, including those that depend on Canada's forest sector. Canada negotiated intensively and in good faith toward a fair and comprehensive agreement. However, the terms proposed by the United States asked too much of Canada and offered too little in return. Canada therefore suspended negotiations rather than accept a bad deal that would undermine Canadian workers, businesses, strategic industries and national sovereignty.
In response, Canada is matching the new U.S. tariffs dollar for dollar, including on pulp and paper, and is providing $7.5 billion in new and enhanced support for affected workers and businesses. As part of these efforts, the Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada (PrairiesCan), today announced a $20 million federal investment to support the modernization of Mercer Peace River Pulp Ltd., reduce production costs and strengthen the mill's competitiveness in changing global markets.
The investment will support upgrades to the mill's facilities and equipment to improve operational efficiency and enable a shift toward a more profitable mix of hardwood and softwood pulp. Planned improvements include upgrades to heavy black liquor piping, the rebuilding of pulp machine rolls, and improvements to a lime kiln and recovery boiler.
The upgrades are expected to lower production costs, reduce emissions and improve output. They will also position the facility for potential future retrofits related to innovative energy production and carbon capture, creating additional opportunities for Mercer Peace River to diversify its revenue streams and strengthen its long-term resilience.
By supporting productivity, modernization and market competitiveness, the federal government is helping Alberta's forest sector respond to the immediate pressures created by U.S. tariffs while building greater economic resilience over the long term. Today's investment will support good jobs, strengthen regional supply chains and help Mercer Peace River remain an anchor of northern Alberta's economy for years to come.
