Thunder Bay Pulp and Paper Halts Newsprint Production, Cuts 150 Jobs
Thunder Bay Pulp and Paper has decided to halt its newsprint production due to a significant decline in demand. This decision will impact 150 jobs as per their latest announcement on January 22. The company will be filing notices with the provincial labor ministry to implement this change within the current quarter.
Reasons for Halting Newsprint Production
The decision was influenced by a series of factors. Thunder Bay Pulp and Paper explored various strategies to adapt to the changing newsprint market. However, the persistent decline in demand has proved challenging. Additionally, the company faced rising input costs, further complicating their operational viability.
Declining Demand for Newsprint
Company CEO Norm Bush highlighted the stark reality of the market. He noted that North American newsprint demand has plummeted by 40% since 2022. In fact, the decline accelerated with an 18% drop in 2025 alone. Bush stated that these market conditions were pivotal in the decision to cease newsprint production.
Future Plans and Employee Support
Despite ceasing newsprint operations, Thunder Bay Pulp and Paper will continue to function as a single-line softwood kraft mill. The facility will focus on generating renewable energy for sale to the Ontario grid. The company has assured employees that it is actively collaborating with local unions and government officials. They aim to provide support through employment transition resources and retraining programs for those affected by layoffs.
Community Impact and Commitment
This decision is not taken lightly, as it affects not only the workforce but also the wider Thunder Bay community. The mill has been operational for over a century, contributing to local businesses and Indigenous partners. “We understand that our decision has wide-ranging effects,” said Bush, referring to the mill’s deep roots in the community.
Corporate Transition and Future Investments
In 2023, Connecticut-based Atlas Holdings acquired the facility from Resolute Forest Products and subsequently renamed it Thunder Bay Pulp and Paper. The company is now reaching out to both federal and provincial governments for funding to reinvest in their softwood kraft pulp operations. This initiative aims to secure the mill’s position as a vital economic anchor in the region.
According to Bush, the paper machine will be safely shut down in a manner that allows for future conversion. “As a company, we are not going anywhere,” he reassured. Thunder Bay Pulp and Paper remains committed to working with all stakeholders during this transitional phase to pave the way for a promising future in Ontario.
