Canfor acquired the Fox Creek site only three years ago in 2021 as part of a broader push to expand its operating footprint. However, the company now views the plant as no longer viable. The facility has struggled under the dual burden of external trade barriers and a degraded timber supply caused by chronic pine-beetle outbreaks and recent forest fires. This decision follows a separate shutdown earlier this month at a Canfor pulp mill in British Columbia, which the company attributed to an oversupplied global market.

Trade tensions remain a central driver for the sector's instability. The U.S. Lumber Coalition reports that tariffs have significantly eroded Canada’s presence in the American market, dropping its share to 19% from 34% in 2016. U.S. producers maintain their support for these duties, arguing that Canadian government subsidies distort fair competition.