British Columbia officials, industry groups and labour leaders are calling for coordinated action following Domtar’s decision to indefinitely idle its Howe Sound pulp mill and Bayview Fibre chipping facility in Port Mellon.
The decision will affect approximately 400 employees and remove about 380,000 metric tonnes of annual northern bleached softwood kraft (NBSK) pulp capacity from the market. Stakeholders warn, however, that the consequences will extend well beyond the two facilities.
B.C. Forests Minister Ravi Parmar said the province’s pulp sector is undergoing a major shift as inflation-adjusted pulp prices approach their lowest level in 100 years. He also pointed to growing competition from lower-cost hardwood eucalyptus pulp produced mainly in the Southern Hemisphere.
Advances in hardwood pulp technology are placing further pressure on prices and reducing market opportunities for softwood pulp, according to the minister.
The province said it is prepared to work with Domtar through a cross-government working group to identify practical, long-term solutions. Parmar said the effort will be most effective with the company’s continued participation and a shared focus on maintaining a strong forest-industry presence in British Columbia.
The government also said it will engage with Sunshine Coast community leaders, labour representatives and workers to help ensure affected people can access income and mental-health supports during the transition. Read the minister’s statement.
The Truck Loggers Association said the idling will affect independent logging and forestry contractors, transportation providers, suppliers and local businesses throughout the coastal supply chain.
The association called on governments to improve access to economically viable fibre, address British Columbia’s high-cost operating environment and create more stable conditions for forestry businesses and rural communities.
The BC Council of Forest Industries (COFI) similarly identified increasing costs and constraints on local wood supply, weaker Asian demand and sustained weak global pulp prices as major pressures. COFI said pulp mills are integral to the forest-products value chain because they use residual chips and other fibre from sawmills to maximize value from each tree.
According to COFI, at least 21 B.C. lumber mills have closed permanently or indefinitely since 2023. Four pulp mills have also closed or curtailed production over the past nine months, while more than 15,000 forestry jobs have been lost since 2022.
Unifor called for immediate action from the provincial and federal governments. The union is urging governments to implement, this year, the recommendations released in June by the Canadian Forest Sector Transformation Task Force.
Unifor said it remains prepared to work with Domtar and governments on possible solutions, arguing that the Howe Sound idling does not necessarily have to mark the end of the operation.
