Domtar to Indefinitely Idle Howe Sound Pulp Mill, Impacting 400 Workers

📅 Today

Domtar has announced the indefinite closure of its pulp mill in Howe Sound, B.C., affecting approximately 400 employees due to decreased demand and market challenges.

HOWE SOUND, B.C. — The pulp industry in British Columbia is facing another setback, as Domtar has declared an indefinite idling of its Howe Sound pulp mill, along with the Bayview Fibre chipping facility located in Port Mellon on B.C.’s Sunshine Coast. This decision, announced on Thursday, will impact around 400 workers in a sector that has been struggling due to a combination of tariffs, international competition, and a shortage of raw materials.
Company president Luc Thériault explained in a news release that the closures were driven by reduced demand, unfavorable pricing, and a lack of accessible fibre. He emphasized that the choice to idle these facilities was made after thorough consideration and does not reflect on the employees’ performance.
Domtar revealed that it has invested $500 million since acquiring the mill in 2010, including the establishment of the fibre facility. However, the company stated that it can no longer withstand the pressures from declining demand in Asia, ongoing low pulp prices on a global scale, and a decrease in the availability of affordable domestic fibre.
Thériault acknowledged the dedication of the workers at both sites, noting their efforts to enhance operational efficiency, but reiterated that market conditions ultimately dictated the decision. The company expressed its understanding of the significant impact this closure will have on both the employees and the Sunshine Coast community.
The company plans to monitor market trends and the business climate, indicating that it will consider future opportunities if conditions improve. A company spokesperson clarified that while the mill is being idled, the equipment will remain on-site, allowing for the possibility of restarting operations should the situation change.
British Columbia’s Forests Minister, Ravi Parmar, described the day as immensely difficult due to the loss of jobs that have historically supported families and communities for generations. He stated that the government is committed to reaching out to affected communities to provide necessary support for workers, which will include mental health resources.
Parmar highlighted the challenges facing the province’s pulp sector, citing that it is experiencing a seismic shift in the global pulp market, with current prices nearing record lows not seen in a century when adjusted for inflation.
Union Unifor has voiced concerns that this closure exemplifies a deepening crisis within the forestry sector, warning that without government intervention, the sector may be on the brink of collapse. Domtar’s decision follows the announcement of the closure of its Crofton mill in December, and Canfor’s recent permanent shutdown of its Northwood mill in Prince George. The forestry sector in B.C. has seen thousands of job losses attributed to a variety of factors, including recent heavy tariffs imposed by the U.S. government.

Related Posts