400 pulp mill jobs lost as Domtar idling Howe Sound facility indefinitely
The forest products company is closing its pulp mill and chipping facility at Port Mellon, blaming reduced Asian demand and poor global pulp pricing. Operations end in October.
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Around 400 pulp mill and chipping workers at Port Mellon on Howe Sound learned Thursday they have lost their jobs as forest products company Domtar shuts down its facility indefinitely.
The Howe Sound mill and Bayview Fibre chipping facility will be "indefinitely idled," with operations expected to cease in October. Domtar has invested nearly $500 million in the mill since purchasing it in 2010 and built the Bayview Fibre facility, but says the business cannot overcome reduced demand from Asia, sustained poor pricing for pulp globally, and a decline in affordable domestic fibre.
"The business decision to indefinitely idle these facilities is the result of careful consideration and is not a reflection on the employees," said Luc Thériault, Domtar's president of Canadian operations. "The teams at Howe Sound and Bayview Fibre worked tirelessly to improve performance but current market conditions require this step."
The Truck Loggers Association called the closure a "serious setback for B.C.'s coastal forest sector and the communities that depend on it," noting that independent logging contractors, local businesses, and rural communities will all be impacted. The association is continuing to call on government to improve access to economically viable fibre, address B.C.'s high-cost operating environment, and create conditions to sustain forestry jobs and rural communities.
This is the second major Domtar closure in the province; the company closed its Crofton pulp mill on Vancouver Island in December 2025.
What support is available to displaced workers beyond severance?
Will the facility ever restart, or is the closure permanent in practice?
We'll update this story as answers emerge.
The facts
How many jobs are being lost at the Howe Sound facility?
Around 400 pulp mill and chipping workers at the Port Mellon facility on Howe Sound are losing their jobs as Domtar shuts down the mill and Bayview Fibre chipping facility.
When will the Howe Sound mill stop operating?
Operations at the Howe Sound mill and Bayview Fibre facility are expected to cease in October 2026.
Why is Domtar closing the Howe Sound facility?
Domtar cited reduced demand from Asia, sustained poor pricing for pulp globally, and a decline in affordable domestic fibre as reasons the business cannot continue operating.
When did Domtar purchase the Howe Sound mill?
Domtar purchased the Howe Sound mill in 2010 and has invested nearly $500 million in it since then.
