Domtar has recently announced the indefinite suspension of operations at the Howe Sound Pulp and Paper mill located on British Columbia’s Sunshine Coast. The decision was disclosed during a town hall meeting held for employees on August 20 at the facility in Port Mellon. Additionally, Domtar stated that operations at the Bayview Fibre chipping facility will also be put on hold. Approximately 400 employees will be impacted by this announcement.
Andrew Appleton, a tugboat captain at the mill with 22 years of experience, expressed his shock at the news, mentioning that they had anticipated such a scenario if conditions did not improve but did not expect it to happen so swiftly. Employees were informed that their last working day would be on October 19, leading to a sense of unease and uncertainty among the workforce.
The closure comes after a past incident in 2015 where a section of the mill ceased operations, affecting up to 180 workers. Domtar’s president, Luc Thériault, attributed the current decision to the challenges faced by the business, including reduced demand from Asia, unfavorable global pulp pricing, and a decline in affordable domestic fiber. Thériault emphasized that the move to idle the facilities indefinitely was made after careful deliberation and is not a reflection of the employees’ efforts.
Appleton shared his concerns about the impact on the community and mentioned that several businesses in the area would also be affected by the closure. The decision has raised alarms in the forestry sector, with Unifor National president Lana Payne calling for immediate action from the British Columbia and federal governments to address the deepening crisis in the industry.
In response, Forests Minister Ravi Parmar expressed empathy for those affected and highlighted the need for collaborative efforts to find long-term solutions for the challenges facing the pulp sector. Parmar acknowledged the global market changes affecting pulp prices and pledged to work with local stakeholders to provide support, including financial and mental health assistance, to those impacted by the closure.