New funding supports pulp production, steel manufacturing and regional market expansion
NANAIMO, B.C. – Nanaimo’s manufacturing sector is receiving more than $8.8 million in federal funding through an initiative designed to help businesses respond to trade disruptions, improve productivity, and expand into new markets. The funding is part of the Regional Tariff Response Initiative (RTRI), administered by Pacific Economic Development Canada (PacifiCan). Twenty-four B.C. Companies and organizations received funding in the announcement, including three operating in Nanaimo.
The investments include support for forestry production, steel manufacturing, and regional business development, with projects aimed at strengthening local industrial capacity and competitiveness.
Harmac Pacific pulp mill receives $5.5 million
Nanaimo Forest Products, which operates the Harmac Pacific pulp mill in south Nanaimo, is receiving $5.5 million. The funding will support the installation of new equipment intended to increase production capacity, improve efficiency, and reduce operating costs. PacifiCan says the project will help maintain forestry jobs and strengthen the competitiveness of B.C. pulp products in international markets.
Niik Steel plans new manufacturing facility
Niik Steel, based in the Duke Point Industrial Park, will receive $1 million toward a facility producing metal decking, flooring, and other steel building components for markets across Western Canada. The federal funding supports a separate project from the $900,000 provincial grant the company received earlier in 2026 through the B.C. Manufacturing Jobs Fund.
Funding to support market expansion
The Vancouver Island Economic Alliance (VIEA), a Nanaimo-based non-profit organization, is receiving $300,000 to support programs connecting local producers with buyers and helping businesses access new domestic and international.
The federal investments come amid continuing trade uncertainty affecting Canadian manufacturers and exporters. The RTRI is intended to help businesses adapt to changing market conditions, strengthen supply chains, and improve their ability to compete. Nanaimo’s manufacturing sector includes businesses involved in industrial production, fabrication, and related activities. According to Nanaimo Prosperity Corporation, the city had 148 manufacturing businesses in 2023, employing approximately 2,117 people.
The new funding adds to other government support received by some local businesses this year. For Niik Steel, the federal commitment follows its provincial investment in capital expansion. The projects reflect different approaches to strengthening the region’s manufacturing base, from upgrading existing pulp mill equipment to establishing new steel product capacity and helping local businesses connect with potential markets. The funding is part of broader federal efforts to support Canadian businesses facing tariff-related pressures and international trade disruptions. The precise timelines for completing the Nanaimo projects were not specified in the source material.
