The Crofton pulp mill will close permanently in mid-December.
Domtar confirmed the closure of the mill, which has been in operation since 1957, on Dec. 2.
The mill’s closure will affect approximately 350 employees.
Steve Henry, Domtar paper and packaging president, said the mill has been challenged for some time.
He said that 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 fibre in B.C. necessitates the closure,” Henry said.
“These decisions are made with careful consideration and we recognize the hardship this decision will have on both our employees and the Cowichan Valley community, as well as our business partners and the coastal forest sector.”
North Cowichan Mayor Rob Douglas said the news is devastating for the more than 350 workers at the mill who will soon be out of their jobs, and the community, just before the Christmas season.
He said North Cowichan will also take a big financial hit with the mill’s closure as the mill is the municipality’s biggest taxpayer, contributing approximately $5 million to the municipal coffers each year.
“Those funds are used to fund a wide range of core services in North Cowichan,” Douglas said.
“It won’t have much impact in the budget for 2026, but it will in future years. The future looked so bright for the mill about three years ago when it received $18.8 million in provincial and federal funding to retool its operations, but those retooling projects never went ahead.”
Henry said Domtar’s primary focus is on the safety and well-being of its employees at the mill as the company navigates through the coming weeks.
He said the mill site will continue to be managed in compliance with all applicable environmental and other laws, including under Domtar’s existing Environmental Management Act permits.
“Domtar is exploring a variety of possibilities for the future of the site,” Henry said.
“Domtar is committed to its remaining mills in B.C. and to working with the government and industry partners to improve access to affordable fibre.”
Kim Haakstad, president & CEO of the BC Council of Forest Industries, said COFI extends its deepest concern to the workers, families, and communities affected by today’s closure announcement.
She said that for too many people across the province, the consequences of inaction for the struggling forestry sector are no longer theoretical; they are happening in real time.
“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,” Haakstad 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.”
The BC Conservative Party said the announcement of the mill’s closure is devastating news for Crofton and for every family that relies on the mill.
A statement from the Conservatives said 350 workers earning an average of about $100,000 a year are now facing the holiday season without work.
“The mayor of Campbell River warned on Sept. 22 that we are one pulp mill closure away from the total collapse of the coastal forestry,” the Conservatives said.
“That collapse has started today.”