Citing plunging demand and rising costs, Thunder Bay Pulp and Paper announced Thursday it plans to end the production of newsprint, putting 150 people out of work.
In a news release, the company said it will file notices with the Ontario Ministry of Labour to cease newsprint operations in the first quarter of this year.
“This decision was made only after significant efforts to reposition the company within the evolving and rapidly declining newsprint market were fully explored,” the company said.
“The impacts of declining market demand were further compounded by significant increases in input costs.”
Thunder Bay-Atikokan MPP Kevin Holland said he’s disappointed by the news, but understands it was driven by market conditions and collapsing demand for newsprint.
Employs around 300 people
“I think it’s around 300 people that are working there,” Holland said.
“And from what they were telling me ... this is going to allow them to continue to focus on and diversify into new product lines to maintain the 300 employees they have at the mill.”
In a news release, Unifor called for more support for the employees affected by the closure.
“This is a blow to the dedicated workers and to community supported by these jobs,” said Unifor pational president Lana Payne said in the release.
“Not only will this affect the workers at the pulp and paper mill, but local businesses and partners in the area that rely on the operations and the incomes from those good-union jobs.”
“Workers at the Thunder Bay Pulp and Paper mill have Unifor’s support during this difficult time,” added Ontario regional director Samia Hashi.
Tough time for the industry
“This production shift and potential job loss mark another hit to Canada’s forestry sector, long targeted by the U.S. trade measures, and undermined by a lack of investment and aging infrastructure.”
With as many as 150 people affected, the company said it is working closely with the local unions and all levels of government “to ensure affected employees have access to employment transition supports, retraining programs and other necessary resources.”
“North American newsprint demand has declined by 40 per cent since 2022 when Atlas Holdings purchased the company,” CEO Norm Bush said in the release.
“North American newsprint demand has declined by 40 per cent since 2022 when Atlas Holdings purchased the company.”
— Thunder Bay Pulp and Paper CEO Norm Bush
“Demand for newsprint in North America declined 18 per cent in 2025 alone. Demand decline is the most insurmountable factor in the decision to cease newsprint production in Thunder Bay.”
“This was a very difficult decision, and we know how deeply it affects our employees and their families,” Bush added.
“After more than 100 years of operating in the Thunder Bay community, we also understand that the impacts extend beyond the mill, affecting local businesses, Indigenous partners and the broader region.”
Supports 7,000 jobs
Thunder Bay Pulp and Paper will continue to operate as a single-line Softwood Kraft mill and generate renewable energy for sale to the grid while driving the local and regional economy with up to 7,000 jobs when reliant sawmills and others in the supply chain are accounted for.
“In the months ahead, the company will work with the federal and provincial governments to refine its plans for new investments in the Softwood Kraft Pulp mill and appreciates the support of Premier Ford and his government in ensuring the company remains the anchor mill of northwestern Ontario’s forestry sector,” the release said.
The paper machine will be shuttered in a condition that could enable future conversion, the company said. Despite the layoffs, the mill expects to have a long future in the area.
“As a company, we are not going anywhere,” Bush said.
“We are the anchor mill here in northwestern Ontario and we will continue to be. We will work collaboratively with all stakeholders as this transition unfolds and we position the company for a bright future in Ontario.”
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