Resolute Forest Products is suspending indefinitely its wood-cutting operations in Quebec's Mauricie region near Trois-Rivieres.
The suspension, which starts Friday, will affect at least 180 jobs.
The Montreal-based company attributed the decision mainly to high fibre costs, but also low market selling prices.
Spokesman Karl Blackburn says the decision won't have an immediate impact on an area sawmill that employs 135. However, that situation could change in the coming weeks once stockpiles are used up.
Resolute said it has had discussions with the provincial government about fibre costs and won't restart operations if the situation doesn't change.
Last summer, the company and two competitors temporarily suspended activities in Quebec's North Shore because wood was damaged by an infestation of spruce budworm.