As Ontario braces for a snap provincial election called by Premier Doug Ford, the languishing forest industry in rural and Northern Ontario remains a critical yet overlooked issue.
The closure of major pulp mills in Espanola and Terrace Bay have dealt a severe blow to the region’s economy, with far-reaching consequences that demand immediate attention.
The indefinite idling of Domtar’s Espanola pulp mill in November 2023 and Aditya Birla’s Terrace Bay mill in January 2024 has resulted in the loss of over 850 direct jobs and the annual production of 600,000 tonnes of Northern Bleached Kraft pulp.
These closures have had a domino effect, impacting harvest and forestry contractors, support jobs, and regional sawmills that relied on these pulp mills for chip consumption.
The subsequent and recent closures of Midway Lumber Mills in Thessalon after 70 years of operation and the Cascades containerboard mill in Trenton further underscores the industry’s dire state.
The Need for a Comprehensive Review
With only two pulp mills remaining operational in Ontario, the forest sector is at a critical juncture. The lack of product diversity and mutual support among mills threatens the survival of the entire industry.
This situation calls for a thorough review and strategic planning to revitalize the sector. The aging infrastructure of the closed mills presents both a challenge and an opportunity.
While the cost of rebuilding these facilities would be substantial—estimated at over $500 million each—it also opens the door for modernization and innovation. Ontario now has a unique chance to re-imagine its forest sector, potentially introducing new, state-of-the-art pulp mills that could transform the industry.
Potential for Innovation and Growth
Modern pulp mills offer significant advantages in efficiency and versatility. They can be designed to produce valuable by-products and generate excess green power, contributing to Ontario’s electricity grid. This aspect is particularly relevant given the increasing power demands for AI data centres and electric vehicles.
The availability of wood supply in Ontario could support a new, world-class pulp mill. While not on the scale of recent developments in Brazil, a mill utilizing 2 million to 2.5 million cubic metres of wood annually could be a game- changer for the region.
Such an investment would not only revitalize the forest industry but also provide a much-needed economic boost to Northern Ontario.
Political Response and Future Outlook
Despite the significant impact of these closures on northern communities, there has been a noticeable lack of response from Ontario’s political parties.
As the province heads into an election, it is crucial for voters to demand concrete plans for the forest sector’s revival from each of the party leaders.
The upcoming election presents an opportunity for political parties to address this issue head-on. Voters should look for comprehensive strategies that include:
- Investments in modern, efficient pulp mills
- Support for research and development in forest products
- Ensure adequate supply and planting new trees in response to wildlife and windstorms
- Initiatives to attract new businesses to the sector
- Training programs to develop a skilled workforce in all parts of the forestry industry infrastructure.
The forest industry’s potential for providing green solutions aligns well with current environmental priorities. Political parties should consider how a revitalized forest sector could contribute to Ontario’s climate goals while also driving economic growth in rural and northern regions.
The government made a promise to work towards an annual Ontario harvest of 30 million cubic metres, according to the 2020 Ontario Forest Strategy. It is likely the 2024 harvest slipped below 10 million, down from 5 million from 2020.
As Ontarians prepare to cast their votes, they should critically evaluate each party’s commitment to rejuvenating this vital industry. The future of rural and Northern Ontario’s economy and the sustainability of its communities may well depend on the forest sector strategies presented in this election campaign.
Tom Clark, CMC Consulting
Don Huff, Eco Strategy
Jeremy Williams, Arborvitae Environmental Services Ltd.
Bud Knauff, R J Knauff & Associates
