Cedar planks are stacked at a lumber yard in Montreal, on April 25, 2017. Pulp and paper materials are pivotal in the production of military-grade components such as nitrocellulose, a key ingredient in artillery ammunition. This makes Canadian producers in this sector a vital national security interest.Robert Dimitrieff is chief executive officer of Patriot Forge Co., a metalworking company in Canada. He also serves on the International Economic Policy Council of the C.D. Howe Institute.
The March, 2023, acquisition of Resolute Forest Products by privately held Paper Excellence – among other purchases of Canadian producers by parties related to foreign corporations, notably fromand has already amassed a sizable share of Canada’s forest products industry.
Nitrocellulose, or guncotton, is produced primarily from wood pulp and is critical for producing smokeless gunpowder used in military ammunition. Currently, China dominates the global nitrocellulose market, controlling the production and export of this vital material. Europe’s dependency on Chinese nitrocellulose has already led to supply shortages, hampering efforts to support Ukraine amidst its ongoing conflict with Russia.
Even more ironic is the fact that industrial processes required for the production of nitric acid, sulphuric acid and toluene are tightly correlated with hydrogen production, a sector the government of Canada has targeted for development. Policy reforms: Implement policies that incentivize the production of high-value derivatives such as nitrocellulose, toluene and other core defence inputs within Canada.