Thunder Bay Newsprint Mill Closure Affects 150 Jobs Amid Demand Decline

Based on coverage from CBC, CP24, Winnipeg Free Press, TBNewsWatch, TBNewsWatch, and Northern Ontario Business.

Thunder Bay Pulp and Paper is set to halt its newsprint production, a decision that will impact 150 employees. The company, citing a significant drop in demand and rising operational costs, announced the closure on Thursday. This move marks the end of an era for the Thunder Bay community, where the mill has been a fixture for over a century.

Declining Demand Forces Closure

The decline in North American newsprint demand has been stark, with a 40% drop since 2022, the year Atlas Holdings acquired the company. In 2025 alone, demand fell by 18%, making it increasingly untenable for Thunder Bay Pulp and Paper to continue its newsprint operations. CEO Norm Bush emphasized that this decline was the primary driver behind the decision to cease production.

Transition Support for Affected Workers

The company is collaborating with local unions and government bodies to provide support for the employees affected by the closure. This includes access to employment transition supports, retraining programs, and other necessary resources. Thunder Bay Pulp and Paper is committed to ensuring a smooth transition for its workforce during this challenging period.

Focus Shifts to Softwood Kraft Production

Despite the closure of the newsprint division, Thunder Bay Pulp and Paper will continue to operate as a single-line Softwood Kraft mill. The facility will also generate renewable energy for sale to the Ontario power grid. The company plans to work with federal and provincial governments to refine its investment plans for the Softwood Kraft Pulp mill, ensuring its continued role as an anchor in Northwestern Ontario's forestry sector.

Community and Economic Impact

The closure of the newsprint division is not just a blow to the employees but also to the broader Thunder Bay community. The mill has been a significant economic driver, supporting up to 7,000 jobs when considering the entire supply chain. Local businesses, Indigenous partners, and other stakeholders will feel the ripple effects of this decision.

Future Prospects and Potential Conversion

While the paper machine will be shuttered, it will be done in a manner that allows for potential future conversion. The company is exploring possibilities for repurposing the machine, although any such transition would require significant investment and time. CEO Norm Bush remains optimistic about the mill's future, stating, "We are not going anywhere. We are the anchor mill here in Northwestern Ontario, and we will continue to be."

As Thunder Bay Pulp and Paper navigates this transition, the focus will be on maintaining its pivotal role in the region's economy while exploring new opportunities for growth and diversification.

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