Vancouver Island Mill Closure Impacts 350 Workers | The Current

Vancouver Island Mill Closure Leaves 350 Workers Facing Uncertain Future

The permanent Vancouver Island mill closure at Domtar’s Crofton pulp facility has sent shockwaves through the Cowichan Valley, marking yet another significant loss for British Columbia’s already strained forest sector. The company confirmed that approximately 350 employees will be affected as operations cease after years of declining pulp prices and limited access to affordable fibre.

In its statement, Domtar emphasized that the ongoing downturn in global pulp markets, paired with increasingly constrained fibre supply in B.C., made continued operation unsustainable. Company executive Steve Henry acknowledged the gravity of the decision, noting its profound effect on employees, local businesses, and the broader coastal forestry economy.

Provincial Leaders Call Closure “Gut-Wrenching”

B.C. Forests Minister Ravi Parmar called the shutdown “gut-wrenching,” attributing the industry’s mounting challenges to volatile global markets, climate-driven wildfire losses, shrinking fibre availability, and persistent U.S. trade barriers. He stressed that the government will explore all possible pathways to keep the Crofton site viable for future forestry employment.

Industry Groups Warn Sector Is at a Breaking Point

The BC Council of Forest Industries said the closure illustrates the urgent need for regulatory reform, improved access to predictable wood supply, and faster permitting. President Kim Haakstad emphasized that while trade disputes contribute to instability, many of the industry’s challenges stem from internal policy and operational barriers.

The shutdown follows similar announcements across the province, including West Fraser Timber’s decision to permanently close its 100 Mile House mill, affecting another 165 workers. Together, these closures add to growing concern that B.C.’s coastal forest sector is nearing a tipping point.

Community Impact Felt Across Vancouver Island

As the Crofton mill has served as a major economic anchor for generations, its absence will be felt not only by mill workers but also contractors, loggers, truckers, and local businesses—especially as the closure arrives just before the holiday season.

Parmar reaffirmed that the province is committed to supporting workers and partnering with local and Indigenous communities to explore future opportunities at the site.