Canada Grants $100 Million Loan to Millar Western Forest Products

The Government of Canada provided a $100-million loan to Millar Western Forest Products Ltd. to help the company manage the impact of steep U.S. tariffs and global trade instability. Announced by Minister of Finance and National Revenue Francois-Philippe Champagne, the funding is designed to support near-term operational needs, specifically the rebuilding of log inventories and the protection of approximately 420 jobs.

Millar Western operates three pulp mills across Alberta and British Columbia. The company is heavily export-oriented, with 93 percent of its sales directed toward Asian markets, primarily China. The loan comes amid market instability for softwood lumber and pulp driven by ongoing trade disputes between the United States and China.

The funding was administered by the Department of Finance Canada through the Large Enterprise Tariff Loan facility. This $10-billion fund is used to assist companies facing trade-related uncertainty; Algoma Steel has also utilized the facility to retool its products and shift its focus away from U.S. customers.