A pulp mill on Vancouver Island is shutting its doors permanently and around 350 employees are now out of work.
Domtar, which owns the mill in Crofton, says continued poor pricing for pulp and a lack of access to affordable fibre led to the plant closure.
“The Crofton mill has been challenged for some time now,” said Steve Henry, Domtar paper and packaging president, in a statement.
“Over the last 18 months, Crofton employees worked hard to reduce operational costs and they made some extraordinary gains. Unfortunately, continued poor pricing for pulp and lack of access to affordable fiber in BC necessitate the closure.”
Forestry Minister Ravi Parmar called the closure “gut-wrenching for workers.”
He blamed volatile markets, low pulp prices and U.S. duties and tariffs.
Story continues below advertisement
However, Kim Haakstad, president and CEO of the BC Council of Forest Industries, said the consequences for inaction for the struggling forestry sector are happening in real time.
Get daily National news
Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
“We have been sounding the alarm that the situation in B.C. is dire and today is further evidence that the sector needs an urgent response from our government,” she said.
“While softwood lumber duties and trade uncertainty add significant pressure, not everything can be blamed on the dispute. It is important to focus on the areas within our control, and those remain the core issues facing B.C. forestry: access to predictable, economic wood supply and the ability to operate in a competitive and efficient regulatory environment.”
0:32
Canfor announces mill closures in Vanderhoof and Fort St. John
Haakstad said the provincial government must act urgently by improving the efficiency and timeliness of cutting permits and road-building approvals and fast-tracking improvements to B.C. timber sales.
Trending Now
-
Crown Royal maker, union reach deal over Ontario plant closure
-
Trump calls Somali migrants ‘garbage,’ says he doesn’t want them in U.S.
Story continues below advertisement
They also want to see the government address operating costs and support First Nations with the capacity and tools to expedite referrals, co-develop land use plans and the government and industry and increase revenue sharing.
“Without swift, decisive action, B.C. will continue to see more closures, more families uprooted, and more communities eroded,” Haakstad said.
“Instead of realizing the full potential of B.C.’s world-leading forest products, we are continuing to lose ground domestically and globally as highest cost jurisdiction in North America.”
The mayor of North Cowichan, Rob Douglas, called the news “devastating.”
“This site has been a significant part of North Cowichan’s economy for generations, benefitting many families, including my own,” he said.
Douglas said he will be meeting with B.C. Premier David Eby, Parmar, and Labour Minister Jennifer Whiteside, including leadership from the Public and Private Workers of Canada on Wednesday afternoon to discuss next steps.
The mill was originally built in 1956 and has long been a major employer and taxpayer in the region, according to Douglas.
Domtar said the mill will close by Dec. 15.
More on Money
More videos
© 2025 Global News, a division of Corus Entertainment Inc.
