Domtar recently announced the indefinite suspension of operations at the Howe Sound Pulp and Paper mill situated on British Columbia’s Sunshine Coast. This decision was disclosed at a town hall meeting held for employees on August 20 at the Port Mellon site. Additionally, Domtar stated that operations at the Bayview Fibre chipping facility will also be halted. The company estimates that around 400 employees will be impacted by this announcement.
Andrew Appleton, a long-time tugboat captain at the mill, expressed his shock at the news, highlighting that many employees, including himself, had anticipated such a development if conditions did not improve. However, the suddenness of the decision caught them off guard, with their last working day set for October 19. Appleton described the atmosphere at the mill as somber, with employees uncertain about their next steps.
In 2015, the mill had previously closed a section of its operations, affecting up to 180 workers. Domtar’s President, Luc Thériault, cited reduced demand from Asia, ongoing poor global pulp prices, and a decline in domestic fibre affordability as the primary reasons behind the current situation. Thériault emphasized that the decision to idle the facilities indefinitely was made after careful deliberation and not a reflection of the employees’ efforts.
While acknowledging the hardship this move will bring to the affected employees and the Sunshine Coast community, Thériault mentioned that the company would monitor market conditions and evaluate future opportunities if circumstances improve. Appleton, contemplating his next career move, mentioned the challenges faced by employees who relied on the mill for their livelihoods.
The closure of the Crofton mill by Domtar in December, affecting approximately 350 employees, adds to the economic impact on the region. With several local businesses closely linked to the mill, Appleton expressed concern about how they would continue operating. Unifor National president Lana Payne criticized the decision, calling for immediate action from the government to address the deepening crisis in the forestry sector.
In response, Forests Minister Ravi Parmar expressed empathy for those affected by the closure, emphasizing the government’s commitment to finding long-term solutions. Parmar highlighted the challenges faced by the pulp sector due to global market changes and assured support for the impacted individuals, including income and mental health assistance, during this transitional period.