Domtar has made the decision to indefinitely halt operations at the Howe Sound Pulp and Paper mill located on British Columbia’s Sunshine Coast. The announcement was made during a meeting with employees at the Port Mellon site on August 20. Along with the mill, operations at the Bayview Fibre chipping facility will also be put on hold, impacting approximately 400 workers, according to the company.
One of the long-serving employees, Andrew Appleton, a tugboat captain at the mill for 22 years, expressed his shock at the news. He mentioned that the closure was something they had anticipated if conditions did not improve, but the suddenness of the decision caught everyone off guard. Employees were informed that their last working day would be on October 19, leading to a sense of uncertainty and concern among the workforce.
In the past, the mill had already closed a part of its operations in 2015, affecting around 180 employees. Domtar’s president, Luc Thériault, stated that the challenging market conditions, including reduced demand from Asia, poor global pulp pricing, and a decline in domestic fibre availability, were key factors behind the decision to indefinitely idle the facilities. Thériault emphasized that this move was necessary due to market conditions and not a reflection of the employees’ efforts.
Appleton, contemplating his future job prospects, acknowledged that he was relatively fortunate due to his marine license, which could potentially open up opportunities in the ferry industry. The impact of the closure extends beyond the employees to the broader Sunshine Coast community and the coastal forest sector. The announcement of the closure drew attention from Unifor National president Lana Payne, who highlighted the deepening crisis in the forestry sector and urged immediate action from both provincial and federal governments to address the challenges faced by the industry.
In response to the closure, Forests Minister Ravi Parmar expressed empathy for those affected and pledged to work with the company to understand the challenges they are encountering. He highlighted the global market shifts affecting the pulp sector, with prices nearing historic lows. Parmar assured that support would be provided to the affected individuals, including income and mental health assistance, in collaboration with local stakeholders and labor representatives during this transition period.