Howe Sound Pulp and Paper Announces Permanent Closure of B.C. Mill Affecting 400 Workers

PORT MELLON, BC — In a severe blow to British Columbia’s coastal forestry sector, Domtar Corporation officially announced the permanent closure of the Howe Sound Pulp and Paper mill Thursday afternoon, ending over a century of industrial operations on the Sunshine Coast and impacting approximately 400 direct union and salaried workers.

Industrial Economics and Fibre Supply Shortages

Company executives confirmed to employees and local union leadership that the mill will cease manufacturing on October 19, 2026. The corporate decision was driven by an unsustainable convergence of depressed global kraft pulp prices, escalating coastal electricity rates, and an acute shortage of economic sawmill wood chips resulting from widespread interior sawmill curtailments.

Unifor Local 1119 leadership called on provincial and federal governments to provide emergency transition funding and early retirement bridge programs for senior mill operators.

Provincial Response and Regional Economic Impact

B.C. Minister of Forests Bruce Ralston issued a statement expressing profound concern for affected families, confirming that the provincial Community Transition Team will deploy to Gibsons and Sechelt to provide career retraining, severance counseling, and mental health support.

Regional district chairs warned that losing the Sunshine Coast's largest industrial taxpayer and private employer will significantly strain municipal tax revenues and local commercial businesses.

Facility Decommissioning Timetable

Environmental remediation and facility decommissioning planning will begin immediately following the final October production shift.