COFI Warns of Escalating Impacts from BC Mill Closures

Industry News

The BC Council of Forest Industries (COFI) has issued a concerned statement in response to new mill closures announced across the province, underscoring how the crisis is now affecting workers and rural communities in real time.

Domtar’s permanent closure of the Crofton pulp mill — cutting 350 jobs — illustrates the severity of the situation.

news1 3dec25 1COFI President & CEO Kim HaakstadCOFI President & CEO Kim Haakstad said the latest closures reflect long-standing structural challenges. While U.S. softwood lumber duties and trade uncertainty continue to add pressure, she emphasized that the most urgent issues lie within the province’s control: dependable access to economic wood supply and a regulatory environment that allows mills to remain competitive.

Urgent Priorities for Provincial Action

COFI is urging the provincial government to move forward on three long-identified priorities:

  • Streamline fibre access, including faster cutting permits, road-building approvals, and improvements to BC Timber Sales.
  • Reduce operating and administrative costs at both the harvest and manufacturing levels.
  • Strengthen partnerships with First Nations through expedited referrals, co-developed land-use planning, and enhanced revenue sharing.

These measures are essential for stabilizing not only sawmills and pulp mills but also the wider value chain of contractors, loggers, truck drivers, and community-based businesses.

Communities Feel the Strain

Local leaders are warning of mounting consequences. Williams Lake Mayor Surinderpal Rathor noted that declining tax revenue could jeopardize essential municipal services. In Campbell River, Mayor Kermit Dahl cautioned that coastal forestry is “one pulp mill closure away” from collapse. Earlier this year, the mayors of North Cowichan and Nanaimo urged the province to maintain the promised 45-million-cubic-metre allowable cut to avoid further job losses and economic strain.

A Sector Critical to BC’s Economy

Forestry contributes $17.4 billion annually to British Columbia’s GDP. The average pulp mill adds $200 million each year, while the sector supports $9.1 billion in wages and $6.6 billion in purchases from BC suppliers.

While COFI acknowledged recent federal support measures, the organization stressed that the most effective way to protect workers is to keep mills operating.

A Call for Swift, Decisive Action

Haakstad warned that without immediate provincial intervention, BC risks more closures, declining competitiveness, and deeper impacts on rural communities. COFI stated it is ready to work with government, First Nations, labour groups, and local leaders — but emphasized that the timeline for action is now.

The BC Council of Forest Industries (COFI) represents British Columbia’s forest sector and advocates for policies that support sustainable forest management, competitive operations, and the economic well-being of forest-dependent communities.

Source: COFI