Domtar to indefinitely idle pulp mill in Howe Sound, B.C., putting 400 out of work

Another mill is shuttering in British Columbia, affecting about 400 workers in the industry that has taken repeated beatings from tariffs, global competition and a lack of fibre. 

Domtar announced Thursday the “indefinite idling” of its Howe Sound pulp mill along with the Bayview Fibre chipping facility in Port Mellon on B.C.’s Sunshine Coast. 

Company president Luc Thériault said in a news release that the shut downs were due to reduced demand, poor prices and insufficient fibre.

“The business decision to indefinitely idle these facilities is the result of careful consideration and is not a reflection on the employees,” he said.

The company said it has spent $500 million since the mill was purchased in 2010 along with the construction of the fibre facility but “the business cannot overcome reduced demand from Asia, unprecedented and sustained poor pricing for pulp globally, and a decline in affordable domestic fibre.”

Thériault said workers at both operations “worked tirelessly to improve performance” but the market conditions were the deciding factor. 

He said they recognize the hardship the decision will have on workers and the Sunshine Coast community. 

The business will monitor market conditions and the business environment “and will evaluate future opportunities if conditions improve,” he said. 

A company spokesperson said idling the mill means its equipment will be kept at the site and could operate again, should the mill be restarted. 

B.C. Forests Minister Ravi Parmar said it was an “immensely difficult day,” with the loss of livelihoods that have supported families and communities for generations.

Parmar said the government will be reaching out to affected communities to ensure workers get the help they need, including mental health supports.

“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,” Parmar said in a statement. 

Union Unifor said the closure is evidence of a “deepening crisis” in the forestry sector and its collapse is around the corner if governments don’t act.

Domtar’s latest shuttering comes after the company announced it was closing its Crofton mill in December, while Canfor announced the permanent closure of its Northwood mill in Prince George last month.

Thousands of jobs have been lost in B.C.’s forestry sector for a host of reasons, including recent punishing tariffs imposed by the U.S. government. 

This report by The Canadian Press was first published Aug. 20, 2026.