The Canadian pulp industry faces another devastating blow as Domtar Corporation announced Thursday the immediate suspension of operations at its Howe Sound pulp mill and the Bayview Fibre chipping facility in Port Mellon, leaving approximately 400 workers without employment. The decision marks the latest chapter in a prolonged downturn that has battered British Columbia’s forestry sector, with industry leaders warning of an accelerating collapse unless governments intervene.
Operations Halted Amid Market Pressures
Domtar’s president, Luc Thériault, confirmed the “indefinite idling” of both facilities in a news release Thursday, emphasising the move was driven by insurmountable market conditions rather than workforce performance. “The business decision to indefinitely idle these facilities is the result of careful consideration and is not a reflection on the employees,” he stated. Workers at both operations, he said, “worked tirelessly to improve performance” despite the challenging environment.
The company has invested heavily in the Sunshine Coast operations since acquiring the mill in 2010, spending approximately $500 million on upgrades and constructing the fibre facility. However, Thériault explained that cumulative pressures had made continuation untenable: reduced demand from Asian markets, historically low global pulp prices, and a shortage of affordable domestic fibre proved impossible to overcome.
The suspension does not constitute a permanent closure. A company spokesperson clarified that equipment will remain on-site, preserving the possibility of resuming operations should market conditions improve. Thériault indicated the business would “evaluate future opportunities if conditions improve,” though no timeline for reassessment was provided.
Government and Unions Sound Alarm Over Sector’s Fate
British Columbia’s Forests Minister Ravi Parmar described Thursday as “an immensely difficult day” for affected communities, acknowledging the profound impact on families who have relied on forestry employment for generations. The provincial government, he said, would reach out to impacted areas to ensure workers receive necessary support, including mental health services.
Parmar highlighted the broader context confronting the sector. “British Columbia’s pulp sector is feeling the effects of a seismic shift in the global pulp market. We are currently approaching the lowest pulp prices in 100 years, when adjusted for inflation,” he warned in a statement. The minister’s comments underscore the structural challenges facing the industry beyond individual company decisions.
Union Unifor offered a starker assessment, declaring the closure evidence of a “deepening crisis” threatening the sector’s very survival. The union warned that complete collapse loomed if governments failed to take decisive action to support forestry workers and communities.
Wider Industry Contraction Accelerates
The Domtar suspension follows a series of mill closures that have devastated B.C.’s forestry sector over recent months. The company itself announced the shuttering of its Crofton mill in December, while Canfor revealed the permanent closure of its Northwood mill in Prince George last month. Thousands of jobs have been lost as companies cite tariffs, global competition, and structural shifts in demand as factors driving their decisions.
The cumulative effect has been severe. Workers, families, and communities that depend on forestry employment face mounting uncertainty as the sector contracts rapidly. Industry observers note that the combination of trade tensions, particularly punitive U.S. tariffs, shifting global demand patterns, and supply chain pressures has created conditions that individual companies struggle to navigate.
Why it Matters
The suspension of Domtar’s Howe Sound and Bayview Fibre operations represents far more than a single company’s business decision. With approximately 400 direct jobs lost and ripple effects extending throughout Sunshine Coast communities, the closure exemplifies the existential threat facing British Columbia’s forestry sector. The convergence of historically low pulp prices, diminished Asian demand, fibre shortages, and punitive trade tariffs has created a perfect storm that threatens to unravel an industry foundational to the province’s economic identity and the livelihoods of tens of thousands of workers. Unless governments, industry, and labour united in developing coherent strategies to address these structural challenges, more communities face the prospect of watching generations of forestry heritage disappear—along with the families and futures it has sustained.
