Thunder Bay Pulp and Paper has decided to cease its newsprint mill operations due to a drop in demand, affecting 150 employees. The company’s CEO, Norm Bush, mentioned that while 150 positions will be cut at the mill, some employees may have the opportunity to transfer to other roles within the company.
The decline in North American newsprint demand has been substantial, with a 40% decrease since Atlas Holdings acquired Thunder Bay Pulp and Paper in 2022. In 2025 alone, there was an 18% decline in demand, and another significant drop is anticipated in 2026. Bush attributed this decision to the persistent softness in the newsprint market, making it financially unviable to continue production.
Despite the challenging situation, Thunder Bay Pulp and Paper is collaborating with local unions and government entities to assist affected employees with employment transition services. The company plans to restructure its operations to focus on a single-line Softwood Kraft mill at its existing location on Neebing Avenue, generating renewable energy for sale to the Ontario grid.
Kevin Holland, Ontario’s associate minister of forestry and forest products, expressed disappointment over the closure of the newsprint facility but reiterated the government’s commitment to supporting impacted workers and the community. Discussions are underway with provincial and federal authorities to explore potential investments in the Softwood Kraft Pulp mill and potential future product diversification.
Recent closures in the northwestern Ontario region, including the impending shutdown of the Ignace sawmill and the closure of Interfor’s sawmill in Ear Falls, have been linked to challenges such as U.S. tariffs and market stagnation. This trend highlights the broader issues facing the softwood industry in the region.