A pulp mill located in Crofton on Vancouver Island is set to permanently cease operations, impacting approximately 350 employees. Domtar announced the closure on Tuesday, citing ongoing low pricing for pulp and limited access to affordable fibre in British Columbia as the primary reasons for this decision.
Steve Henry, president of paper and packaging at Domtar, expressed deep concern for the employees and the Cowichan Valley community affected by this closure. “These decisions are made with careful consideration,” he stated, emphasizing the company’s dedication to the safety and well-being of its workforce during the upcoming transition period.
In addition to the immediate effects on employees, Domtar mentioned that it is actively evaluating “a variety of possibilities” for the future of the mill site. The closure has prompted B.C. Forests Minister Ravi Parmar to describe the situation as “gut-wrenching for workers,” citing the multitude of pressures faced by the forest sector, including volatile markets, low pulp prices, decreasing fibre availability, climate-driven wildfires, conservation measures, and U.S. tariffs.
The political response has been swift, with the Opposition Conservatives demanding Parmar's resignation. They argue that the closure reflects a broader collapse of B.C.’s coastal forest sector. This sentiment echoes a recent announcement from West Fraser Timber, which revealed plans to permanently close its lumber mill in 100 Mile House, resulting in the loss of about 165 jobs by the end of 2025.
Kim Haakstad, president of the BC Council of Forest Industries, stressed that the consequences for the forestry sector are occurring in real time, advocating for urgent government intervention. Haakstad pointed out that while issues such as softwood lumber duties and trade uncertainties are significant, they are not the sole factors driving the crisis. He identified core concerns that require immediate attention, such as ensuring access to predictable and economical wood supply and fostering an efficient regulatory environment.
The industry group is calling on the provincial government to enhance the efficiency and timeliness of permit approvals related to cutting and road-building, as well as to address operating costs at both the harvesting and manufacturing levels. Additionally, there is a push for increased support for First Nations in the realm of land use planning and revenue sharing.
Parmar characterized the closure of the Crofton mill as a painful and unfair event that disrupts the lives of workers through no fault of their own. “This mill in Crofton has anchored Vancouver Island’s economy for generations,” he noted, adding that the loss would severely impact workers, contractors, truckers, loggers, and local businesses, particularly with the holiday season approaching.
In his statement, Parmar reinforced the government’s commitment to exploring every possible opportunity to ensure that the site can continue to support good-paying forestry jobs for the residents of Crofton and the surrounding region. He articulated the responsibility to the workers and their families to leave “no stone unturned” in the pursuit of solutions.
The closure of the Domtar pulp mill is indicative of a troubling trend within the B.C. forestry sector, highlighting the urgent need for comprehensive strategies to address the challenges facing the industry and its workforce.
