Domtar has announced the indefinite idling of operations at the Howe Sound Pulp and Paper mill on British Columbia’s Sunshine Coast, affecting approximately 400 employees. The news was delivered during a town hall meeting on August 20 at the Port Mellon site, where the company also stated that the Bayview Fibre chipping facility will be idled. Employees are expected to have their last day on October 19. Luc Thériault, Domtar’s president, cited reduced demand from Asia and poor global pricing for pulp as key factors in this decision. The mill has been operational for 117 years, and this closure follows a previous reduction in operations in 2015, which impacted 180 workers. Local workers expressed shock and uncertainty about their futures, as many have been employed there for years.
Why It Matters
The closure of the Howe Sound mill highlights ongoing challenges in the forestry sector, particularly in British Columbia, where the industry is facing significant downturns due to global market fluctuations. Historical data indicates that pulp prices are nearing their lowest in a century when adjusted for inflation. This situation reflects broader economic trends affecting the forestry industry, which is a vital component of the local economy. The province’s commitment to engage with local leaders and labor representatives underscores the urgent need for solutions to support affected workers and communities as they navigate these changes.
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