Alberta is providing more than $1.5 million toward a nearly $50-million expansion of the province's only newsprint mill.

The money will come from the Investment and Growth Fund and support upgrades at Whitecourt Newsprint Company Ltd., which operates as Alberta Newsprint Company.

The project is expected to create 13 permanent full-time jobs and about 25 temporary construction positions. More than 220 existing jobs are expected to remain at the facility.

The expansion will modernize the mill and allow it to produce several grades of paper rather than relying as heavily on conventional newsprint.

The product change is intended to help the company reach higher-value markets and remain competitive as demand for traditional newspaper products changes.

Alberta Newsprint Company is a joint venture involving Whitecourt Newsprint Company Limited Partnership and West Fraser Mills Ltd. The mill began production in 1990.

Its Whitecourt operation turns Alberta wood fibre into paper products for customers in Canada and other markets.

The company's information lists daily production capacity of about 747 tonnes and says the paper machine is 8.4 metres wide. The mill is also a major electricity user, with power requirements of up to 125 megawatts.

The provincial funding represents about three per cent of the announced project cost. The remaining investment is expected to come from private sources.

The Investment and Growth Fund is used as a closing incentive for selected projects when the province identifies barriers to a final investment decision.

The government reports the fund has attracted about $30 in private investment for every $1 provided through the program. Budget 2026 committed almost $28 million to the fund.

The Whitecourt project adds to other modernization work at the mill. Emissions Reduction Alberta lists a separate $25.6-million paper-machine upgrade project, supported by $10 million in funding, to reduce energy use and expand production options.

The province's Aug. 13 announcement did not provide a construction start date, completion schedule or detailed production targets for the new expansion.

The project comes as forestry communities across Western Canada face pressure from fibre availability, energy and transportation costs, changing demand and international trade conditions.

For Whitecourt, the expansion carries added significance because the mill is a large long-term employer and part of the regional forestry supply chain.