Domtar announced Tuesday it will permanently close its pulp mill in Crofton, British Columbia, eliminating approximately 350 jobs just weeks before the holiday season.
The company said operations at the Vancouver Island facility will end December 15, though most employees will remain on payroll through mid-February 2026, with some positions extending to April. The mill, located about 70 kilometers north of Victoria, has operated since 1956.
Domtar attributed the closure to sustained market challenges. Steve Henry, the company’s paper and packaging president, said employees reduced operational costs significantly over 18 months but could not overcome poor pulp pricing and limited access to affordable fiber in British Columbia.
The shutdown marks another blow to BC’s struggling forestry sector. West Fraser Timber announced last month it would close its 100 Mile House lumber mill by year’s end, cutting 165 jobs.
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North Cowichan Mayor Rob Douglas called the closure devastating for workers and the community. The municipality will lose approximately $5 million in annual property tax revenue from the mill, its largest taxpayer. Workers at the facility earn an average of $100,000 annually, according to the BC Conservative Party.
BC Forests Minister Ravi Parmar said the province will explore all options to find a buyer for the site and preserve forestry jobs in the region. He plans meetings with union representatives and local officials this week.
The Opposition BC Conservative Party called for Parmar to resign, saying the closure demonstrates the coastal forestry sector is collapsing under his watch. The party said 350 workers earning an average of $100,000 annually now face the holiday season without work.
The BC Council of Forest Industries said the sector faces mounting pressure from softwood lumber duties, trade uncertainty, volatile markets, and shrinking fiber supply. The organization called for urgent government action to address controllable factors affecting the industry.
Domtar said it is considering various possibilities for the property’s future. The company operates three other mills in British Columbia.
More than 100 workers had already lost their positions in late 2024 when the mill curtailed its paper machine operations.
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