Thunder Bay Pulp and Paper has announced the cessation of its newsprint mill operations due to a decrease in demand, impacting 150 employees. The company cited a 40% drop in North American newsprint demand since its acquisition by Atlas Holdings in 2022, with an 18% decline in 2025 alone. CEO Norm Bush mentioned an anticipated double-digit decrease in demand for 2026 as a key factor in the decision.
The market’s softness and inability to cover production costs were highlighted as reasons for exiting the newsprint business. Bush expressed skepticism about newsprint’s revival due to ongoing electronic substitution, leading to a long-term systemic decline.
The company is collaborating with local unions and government levels to provide support services for affected staff. Despite the closure, Thunder Bay Pulp and Paper will continue operating as a single-line Softwood Kraft mill at its Thunder Bay location, focusing on renewable energy production.
Plans include refining investments in the Softwood Kraft Pulp mill with potential future facility conversions. The company aims to assess the economic viability of producing products like liner board but expects this process to be long-term and capital-intensive.
Kevin Holland, associate minister of forestry and forest products, expressed disappointment over the newsprint facility’s closure and affirmed support for affected workers. Recent mill closures in northwestern Ontario, including the impending shutdown of the Ignace sawmill, have raised concerns, attributed to U.S. tariffs and market conditions. The industry is hopeful for federal support following the challenges faced by regional mills.
The closure of Thunder Bay Pulp and Paper’s newsprint mill aligns with a series of shutdowns in the region, underscoring the industry’s struggles.