Domtar to Indefinitely Idle Howe Sound Pulp Mill and Chipping Facility in BC

On Thursday, Domtar announced the indefinite idling of its affiliates’ operations at the Howe Sound pulp mill and Bayview Fibre chipping facility in Port Mellon, BC, citing reduced Asian demand, weak global pulp pricing, and declining availability of affordable domestic fiber.

The decision will remove approximately 380,000 metric tons of northern bleached softwood kraft (NBSK) pulp from the market annually and affect approximately 400 employees.

Commenting on the decision, Domtar President–Canada and CEO of Pulp and Wood Products Luc Thériault said:

“Despite capital investment of nearly CAD$500 million since the mill was purchased in 2010, and the construction of the Bayview Fibre facility, the business cannot overcome reduced demand from Asia, unprecedented and sustained poor pricing for pulp globally, and a decline in affordable domestic fiber.

The business decision to indefinitely idle these facilities is the result of careful consideration and is not a reflection on the employees. The teams at Howe Sound and Bayview Fibre worked tirelessly to improve performance but current market conditions require this step.

We recognize the hardship this decision will have on the employees of the facilities and the Sunshine Coast community as well as the coastal forest sector. The business will monitor market conditions, domestic fiber availability and the overall business environment, and will evaluate future opportunities if conditions improve. In the process of idling the facilities, the primary focus will be on the safety and well-being of the employees.”