More than 300 people will be out of work as forestry company Domtar announces the permanent closure of its mill in Crofton, B.C.
“It’s kind of gut wrenching really. There’s a lot of people who depend on their jobs in this area,” said Bob Foldy, Manager at GeoTech, a Crofton welding company that services the mill.
“This mill is a big part of our business. It’s probably, 40-50% of our business.”
In a release Tuesday, Domtar said about 350 workers are affected by the mill’s closure.
A letter sent to CHEK News from an employee says their last day of work will be on Feb. 3, 2026.
“The mill will cease operation on December 15th,” said Chris Stoicheff, senior director of public affairs at Domtar.
“We will continue to employ our workers at that site until at least February, in some cases April, but the mill will cease operations,” he told CHEK News on Tuesday.
“That’s a lot of families, especially in this economy. It’s hard enough to survive,” said MacKenzie Pawliuk, a welder at GeoTech.
“Its very, very saddening for the area. It has a direct impact on everyone here. It will have an impact psychologically on the workers,” said Crofton resident, Mike Smith.
North Cowichan Mayor Rob Douglas said the closure of the mill is a blow to the community, adding that the mill is the municipality’s single largest taxpayer, paying about $5 million in property taxes annually.
“This is devastating news for local workers, their families and many businesses that rely on the Crofton mill,” said Douglas in a statement.
“These are folks with families to support and mortgages to pay,” he added. “This site has been a significant part of North Cowichan’s economy for generations, benefitting many families including my own. We will do everything we can to support the community through this difficult time.”
The mayor is expected to meet with B.C. Premier David Eby, the province’s forests and labour ministers, and Public and Private Workers of Canada – the union that represents Crofton mill workers – on Wednesday to “discuss next steps.”
The municipality says it’s also working with the Ministry of Jobs and Economic Growth on a possible “community transition table” to help support workers with accessing new jobs or pursuing post-secondary education or other skills training.
Company blames closure on lack of affordable wood fibre
In a release Tuesday, Domtar president of paper and packaging Steve Henry said the Crofton mill had been “challenged” in recent months.
“Over the last 18 months, Crofton employees worked hard to reduce operational costs and they made some extraordinary gains. Unfortunately, continued poor pricing for pulp and lack of access to affordable fibre in B.C. necessitates the closure,” he said.
Stoicheff also blamed the mill’s closure on a lack of affordable fibre supply in B.C.
“Nothing made at this mill went to the United States, so tariffs were not the primary factor here,” he said.
“We need to focus on what we can control and that’s hosting condition. We can’t control market demand, or fluctuations in market demand, but we can control hosting conditions and fibre supply and that’s what we need to focus on… in British Columbia,” he said.
BC Minister of Forests Ravi Parmar, told CHEK News he was saddened by the announcement.
“Crofton has been the anchor of the Island’s forestry sector for many decades. My heart goes out to the forestry workers that make up the Crofton facility. Directly and indirectly that are impacted by today’s announcement by Domtar. The announcement is a gut punch to forestry workers,” said Parmar.
On Tuesday afternoon, the B.C. Conservative party issued a statement calling on Forest Minister Ravi Parmar to resign.
“The closure of the Crofton Pulp Mill is a clear sign that B.C.’s coastal forest sector is collapsing right before our eyes,” said the Conservative caucus.
“This closure leaves 350 workers and their families, without paychecks heading into the holiday season and follows years of NDP-managed decline driven by regulatory uncertainty, delayed permitting, and policy failures that are pushing investment and jobs out of British Columbia.”
The BC Council of Forest Industries (COFI) says the mill’s closure is a sign that the forestry industry is in need of an “urgent response” from the provincial government.
“COFI extends our deepest concern to the workers, families, and communities affected by today’s closure announcement,” said COFI president and CEO Kim Haakstad.
“For too many people across this province, the consequences of inaction for the struggling forestry sector are no longer theoretical — they are happening in real time,” she said.
According to the Domtar website, the Crofton mill had an “economic impact” of $959.5 million, and a total of 375 workers, with another 1,001 “indirect jobs supported by operation.”
The mill was first commissioned in 1957, and had a property tax obligation of $7.76 million, according to the website.
The company says it remains “committed” to its other mills across B.C., and that it’s unsure of what comes next for the Crofton site, though it said it was “exploring a variety of possibilities” for the property.
Stoicheff says it takes time to decommission a mill safely and environmentally, and adds that the mill is also for sale.
Domtar has more than 60 locations across Canada and the U.S., including a paper mill in Port Alberni.
It says the closure of the Crofton mill will reduce the company’s annual pulp production by roughly 380,000 air-dried metric tons of northern bleached softwood kraft pulp per year.
“These decisions are made with careful consideration and we recognize the hardship this decision will have on both our employees and the Cowichan Valley community as well as our business partners and the coastal forest sector,” said Henry in a statement.
“Our primary focus is on the safety and well-being of our employees as we navigate the coming weeks,” he said.
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