Domtar to permanently close pulp mill in Howe Sound, B.C.

Domtar has announced the permanent closure of its pulp mill in Howe Sound, British Columbia, marking another blow to the province's forestry sector. The decision affects approximately 400 workers and follows a series of closures in the industry, which has struggled under the weight of declining demand, poor pricing, and limited access to affordable fibre. The company confirmed the shutdown in a press release issued Thursday, stating that the mills would be indefinitely idled. This move adds to a growing list of closures, reflecting the ongoing challenges facing the sector. The closure involves two sites: the Howe Sound pulp mill and the Bayview Fibre chipping facility in Port Mellon on B.C.'s Sunshine Coast. Company President Luc Thériault stated that the decision was driven by reduced demand, particularly from key markets such as Asia, and the persistent low prices for pulp globally. He noted that despite significant investment, $500 million since the mill was acquired in 2010, the business could not sustain itself amid these economic pressures. Thériault acknowledged the hard work of the employees at both locations, emphasizing that the decision was based solely on market conditions rather than any shortcomings in their efforts. The impact of the closure extends beyond the workplace. B.C. Forests Minister Ravi Parmar described the situation as “an immensely difficult day,” highlighting the loss of livelihoods that have supported families and communities for generations. He pledged support for affected workers, including mental health services, and acknowledged the broader implications for the provincial pulp industry. Parmar pointed to a dramatic shift in the global pulp market, noting that current prices represent the lowest level in over a century when adjusted for inflation. This context underscores the severity of the financial strain on the sector. Unifor, the union representing many of the affected workers, called the closure further proof of a “deepening crisis” within the forestry industry. The union warned that without intervention from governments, the collapse of the sector could become inevitable. This sentiment aligns with recent developments, including the closure of Domtar’s Crofton mill in December and Canfor’s permanent shutdown of its Northwood mill in Prince George last month. These events reflect a pattern of job losses across the region, driven by factors such as the U.S. government’s punitive tariffs on forest products. The decision to idle the mills does not necessarily mean the end of operations at these sites. According to a company spokesperson, the equipment will remain at the location and could potentially be brought back online if market conditions improve. This possibility offers a glimmer of hope for some workers, though it remains uncertain whether such a scenario will materialize. For now, the focus is on addressing the immediate consequences of the closure, including the provision of support services for displaced workers. As the industry continues to grapple with these challenges, the outlook for the forestry sector in British Columbia remains bleak. With multiple mills shutting down and thousands of jobs at risk, the long-term viability of the industry appears increasingly precarious. The government’s response will be crucial in determining how effectively the workforce can be supported during this transition period. Meanwhile, the broader economic implications of these closures are likely to be felt throughout the region.