Domtar Idles Two B.C. Facilities Cutting 400 Jobs

Forest products company Domtar announced the indefinite idling of its Howe Sound pulp mill and the Bayview Fibre chipping facility in Port Mellon, British Columbia. Operations are scheduled to cease in October, resulting in the loss of approximately 400 jobs.

Luc Thériault, Domtar's president of Canadian operations, stated that the business cannot overcome reduced demand from Asia, sustained poor global pulp pricing, and a decline in affordable domestic fibre. He noted that the decision follows nearly $500 million in capital investments at the facilities since 2010.

B.C. Forests Minister Ravi Parmar described the situation as a seismic shift in the global market, noting that inflation-adjusted pulp prices are approaching a 100-year low. Parmar attributed the price drop to an increased supply of low-cost hardwood eucalyptus pulp from the southern hemisphere. The provincial government has pledged income and mental-health supports for affected workers in the Sunshine Coast community.

The Truck Loggers Association called the move a serious setback for the coastal forest sector, while the union Unifor characterized the closure as evidence of a deepening crisis in the forestry sector. This idling follows other recent regional closures, including Domtar's Crofton mill and Canfor's Northwood mill, amid ongoing pressure from U.S. government tariffs.