Ottawa puts $20 million into Peace River pulp mill upgrades
The funding is part of a broader $7.5 billion federal package meant to help Canada's forestry sector withstand new U.S. tariffs.
Why it matters
The funding could help protect jobs and local economic stability in the Peace region as the forestry industry faces pressure from U.S. tariffs.
The federal government is contributing $20 million toward modernizing Mercer Peace River Pulp Ltd. in the Peace region, as part of its response to new U.S. tariffs targeting Canada's forestry sector. The money comes from a $7.5 billion federal support fund created after Canada imposed counter-tariffs in the ongoing trade dispute.
According to the announcement, the funds will go toward lowering production costs, reducing emissions and improving output at the mill in an effort to strengthen its competitiveness in a changing global market. Planned upgrades include improvements to heavy black liquor piping, rebuilding pulp machine rolls, and work on the mill's lime kiln and recovery boiler.
The investment is also intended to help the mill shift toward a more profitable mix of hardwood and softwood pulp production.
The announcement coincided with Premier Danielle Smith's visit to Grande Prairie on Aug. 26, where she officially opened a new Skilled Trades Lab at Northwestern Polytechnic, part of broader efforts to support local economic development in the region amid the ongoing trade tensions.
Compiled by the Alberta Daily Desk — an AI-written summary of reporting from the credited sources below, produced and reviewed under our editorial policy.