Domtar closes Howe Sound pulp mill
Analysis based on 11 articles · First reported Aug 20, 2026 · Last updated Aug 20, 2026
The closure signals continued weakness in the global pulp market and adds to job losses in Canada — British Columbia's forestry sector. It may pressure pulp prices and affect Domtar's operations, while highlighting challenges for the regional economy.
On August 20, 2026, Domtar announced the permanent closure of its Howe Sound pulp mill and the Bayview Fibre chipping facility in Port Mellon on Canada — British Columbia's Sunshine Coast, affecting about 400 workers. Company president Luc Thériault cited reduced demand from Asia, poor global pulp prices, and a decline in affordable domestic fibre as reasons. The company has invested $500 million since 2010 but could not overcome market conditions. Canada — British Columbia Forests Minister Ravi Parmar called it an 'immensely difficult day' and pledged government support, including income and mental-health supports. Union Unifor warned of a 'deepening crisis' in the forestry sector. This closure follows Domtar's Crofton mill closure in December and Canfor's Northwood mill closure in July, reflecting a broader downturn in B.C.'s forestry industry, exacerbated by U.S. tariffs and low pulp prices.
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