Domtar has declared what it refers to as the “indefinite idling” of its operations at the Howe Sound Pulp and Paper mill located on B.C.’s Sunshine Coast.
This announcement was made during a town hall meeting for staff held on August 20 at the facility in Port Mellon.
The company, which owns the mill, also stated that the Bayview Fibre chipping facility will be temporarily halted.
According to the company, around 400 workers will be impacted by this decision.
“We’re just kind of in shock,” remarked Andrew Appleton, a tugboat captain at the mill with 22 years of service.
“It’s something we all feared could happen someday if conditions didn’t improve.”
“None of us anticipated it would occur so rapidly.”
Appleton was on duty Thursday and noted that everyone was reaching out to their families to convey the news. He mentioned that the last working day for employees is expected to be October 19.
“Everyone is just wandering around like zombies at the mill, trying to figure out their next moves,” Appleton expressed.
Tugboat captain Andrew Appleton stated that there will be ‘no more pulp after 117 years’ at the mill established in 1909. (Andrew Appleton)
In 2015, the mill ceased part of its operations, impacting up to 180 employees.
Luc Thériault, the president of Domtar, stated that “the business cannot adapt to lower demand from Asia, ongoing severely low pulp prices globally, and a reduction in accessible domestic [fibre].”
He indicated that the choice to indefinitely suspend these operations was made after thorough consideration and does not reflect on the workforce.
“The teams at Howe Sound and Bayview Fibre have worked diligently to enhance performance, but current market realities necessitate this action,” Thériault remarked.
He acknowledged the difficulties this decision will impose on the workers at these facilities, the Sunshine Coast community, and the coastal forestry sector.
“The company will continue to monitor market trends, availability of domestic [fibre], and the overall business landscape, evaluating future prospects should conditions improve,” Thériault noted.
Appleton is uncertain about his future employment but considers himself fortunate.
“I hold a marine license as a tug captain here, so I hope to transition to the ferries or something similar. I’m not quite sure what my next steps will be,” Appleton stated.
One individual had just relocated to the Sunshine Coast to work at the mill after being laid off from another mill that closed on Vancouver Island, according to Appleton.
“There are many people in my situation who have been here for a long time, and there are also newcomers,” Appleton added.
In December, Domtar announced that it was permanently discontinuing operations at its Crofton mill, which affected around 350 workers.
Appleton remarked that many local businesses closely collaborate with the mill and will feel the repercussions.
“I just don’t know how people will manage to operate heavy machinery while we’re all grappling with this situation,” he said.
Unifor National president Lana Payne stated in a release that the “curtailment” of activities at Domtar’s Howe Sound pulp and paper mill signifies a worsening crisis in the forestry industry and called for immediate action from both the B.C. and federal governments.
“The collapse of the forestry sector in the west, a vital part of the economy, is imminent if governments do not intervene urgently,” Payne asserted.
She expressed disappointment regarding the decision.
“We are fully committed to collaborating with the company and the government to seek a resolution,” Payne stated.
Province responds
Forests Minister Ravi Parmar expressed sympathy in a written statement for those impacted by the announcement.
“We have been in discussions with the company to gain a better understanding of the full extent of the challenges it faces,” Parmar mentioned. “We are ready to work with the cross-government working group to identify realistic, long-term solutions.”
He noted that the pulp industry is experiencing the repercussions of shifts in the global market, with prices nearing their lowest levels in a century, adjusted for inflation.
“We will be reaching out to the Sunshine Coast community right away, collaborating with local leaders, labor representatives, and workers to ensure they receive the necessary support, including income and mental health resources, as they navigate this transition,” Parmar added.