Domtar’s Howe Sound pulp mill in Port Mellon, British Columbia, is expected to resume operations in mid-October, subject to the ratification of a new collective agreement by Unifor Local 1119 members.
The planned restart follows an agreement in principle between Domtar and the provincial government. The Truck Loggers Association said the mill is expected to resume operations following a planned maintenance shutdown.
The development changes the course of Domtar’s August announcement that it would indefinitely idle the Howe Sound mill and the affiliated Bayview Fibre chipping facility. At the time, the company said the decision would affect approximately 400 employees and remove approximately 380,000 metric tonnes of northern bleached softwood kraft (NBSK) pulp capacity from the market annually.
Domtar attributed the planned idling to reduced demand from Asia, sustained weakness in global pulp prices and a decline in affordable domestic fibre. The company also said it had invested nearly C$500 million in the mill since acquiring it in 2010, including the construction of the Bayview Fibre facility.
The provincial government became directly involved in efforts to find a path forward for the operation. As Paper Advance reported in September, British Columbia appointed former senior public servant Don Wright and former Canfor president and CEO Don Kayne to explore options with Domtar for the Port Mellon operation.
Unifor said the agreement in principle between the province and Domtar will help position the mill to reopen, pending ratification of the new collective agreement.
“This is terrific news for our members and the whole community on the Sunshine Coast,” said Unifor National President Lana Payne, who pointed to collaboration between workers, industry and government in reaching the agreement.
The Truck Loggers Association also welcomed the development, saying the mill supports workers and businesses throughout the coastal forest supply chain and plays a significant role in the broader coastal forest economy.
The association said significant challenges remain for British Columbia’s forest sector, including access to economically viable fibre, high operating costs and difficult global market conditions.
Details of the agreement between Domtar and the province have not been publicly disclosed.
Domtar’s August announcement also included the Bayview Fibre chipping facility. The latest public statements reviewed do not separately specify whether Bayview Fibre will resume operations on the same timetable as the Howe Sound mill.
