Domtar to idle Howe Sound pulp mill and Bayview Fibre facility

Domtar has announced the indefinite idling of its Howe Sound pulp mill and the Bayview Fibre chipping facility in Port Mellon, British Columbia. The decision is expected to impact approximately 400 workers on the Sunshine Coast.

Luc Thériault, president of Domtar’s Canadian operations, attributed the move to market conditions, specifically citing reduced demand from Asia, low global pulp prices, and a lack of affordable domestic fibre. The company noted it has invested nearly $500 million in the complex since 2010.

British Columbia Forests Minister Ravi Parmar described the situation as an “immensely difficult day,” noting that the sector is facing a seismic shift in the global market with pulp prices approaching 100-year lows when adjusted for inflation. The Truck Loggers Association (TLA) expressed concern that the closure threatens the stability of the entire coastal forest supply chain, affecting contractors, local businesses, and surrounding communities.

This announcement follows other recent industry setbacks in the province, including the closure of Domtar’s Crofton mill and Canfor’s Northwood mill.