Domtar and the British Columbia government reached an agreement in principle on 1 October 2026 that positions the idled Howe Sound pulp mill to reopen, with a restart expected in mid-October 2026. The reopening depends on ratification of a new collective agreement by Unifor Local 1119 members, with a vote expected the following week.
Why this mattersA restart would partly offset capacity losses in British Columbia pulp, including Canfor's Northwood closure, which removes more than 240 jobs this autumn.
- Agreement in principle between the British Columbia government and Domtar reached on 1 October 2026, according to Unifor.
- The Howe Sound mill is expected to reopen in mid-October 2026.
- The restart is contingent on ratification of a new collective agreement by Unifor Local 1119 members, with a vote expected the following week.
- Canfor's Northwood pulp mill in Prince George is scheduled to close this autumn, affecting more than 240 Unifor Local 603 members.
A study cited by the Wall Street Journal estimates rural Alabama will lose almost USD 7bn in economic activity over the next decade because of Domtar's idling of its Coosa Pines fluff and market pulp mill in Childersburg, shut since May 2026 after a 24 March 2026 announcement citing weak markets and aged assets. Domtar's own fact sheet puts the mill's annual economic impact at USD 569m and its market pulp capacity at 270,000 tonnes. The closure adds to a run of North American softwood kraft cuts, including Domtar's own idling at Port Mellon, British Columbia, and Canfor's permanent shutdown of its Northwood mill in Prince George.
Why this mattersRepeated Southern and Canadian pulp mill closures are compressing timberland values and pulpwood pricing, tightening wood-fibre economics across the paper and packaging supply chain.
- Domtar's Coosa Pines mill in Childersburg, Alabama has been idled since May 2026 after a 24 March 2026 closure announcement citing difficult markets and aged assets.
- A study taken to Alabama's congressional delegation projects almost USD 7bn in lost regional economic activity over the next decade from the closure.
- Domtar's own fact sheet lists the mill's annual economic impact at USD 569m and its market pulp capacity at 270,000 metric tonnes.
- Reported job losses range from 250 to 285, against Domtar's own fact-sheet staffing figure of 275.
- Domtar is separately idling 400 jobs and 380,000 metric tonnes of northern bleached softwood kraft capacity at Port Mellon, British Columbia, by mid-October 2026.
- Canfor confirmed in July 2026 the permanent closure of its Northwood mill in Prince George, removing 300 jobs and 300,000 tonnes of kraft capacity.
Mercer International is curtailing production this month at its 360,000 tonne-per-year Rosenthal northern bleached softwood kraft mill in Germany, for a mix of scheduled maintenance and market-related reasons. The downtime comes as Mercer continues to switch its Celgar mill from NBSK to unbleached kraft pulp on a weaker NBSK market. US NBSK spot prices to the East and Midwest rose USD 5 per tonne to USD 700-720 net delivered through 11 September 2026.
Why this mattersEuropean downtime and announced Canadian closures are thinning spot NBSK availability, giving producers their first price gain in months.
- Rosenthal has capacity of 360,000 tonnes a year of NBSK pulp.
- The September 2026 curtailment covers both scheduled maintenance and market-related downtime.
- Mercer is shifting Celgar output from NBSK to unbleached kraft pulp on a weaker NBSK market.
- US NBSK spot prices to the East and Midwest rose USD 5 per tonne to USD 700-720 per tonne net delivered through 11 September 2026.
- Preliminary September US NBSK contract list prices were unchanged at USD 1,570 per tonne; SBSK was flat at USD 1,505 per tonne.
- Announced closures of Canfor and Domtar market NBSK mills in Canada have so far had little price impact.
Domtar's Howe Sound pulp mill on British Columbia's Sunshine Coast faces indefinite closure after an August 20, 2026 announcement citing deteriorating markets and a decline in affordable domestic fibre. The provincial government appointed negotiators Don Wright and Don Kayne on September 4, 2026 to work with Domtar, as an industry consultant warns the shutdown could trigger a wider collapse of the region's coastal forest sector. Talks continue amid a broader wave of BC pulp mill curtailments, with Domtar's Crofton mill already closed permanently and Canfor's Northwood mill set to shut before year end.
Why this mattersA permanent Howe Sound closure would remove pulp-log demand for coastal sawmills, accelerating structural decline across British Columbia's integrated forest-products supply chain.
- Domtar announced indefinite closure of its Howe Sound pulp mill on August 20, 2026, citing deteriorating markets and a decline in affordable domestic fibre.
- The mill and associated Bayview Fibre facility employ more than 400 people.
- British Columbia's provincial government appointed negotiators Don Wright and Don Kayne on September 4, 2026 to work with Domtar.
- Domtar's Crofton pulp and paper mill closed permanently, taking hold in early 2026.
- Canfor said in July 2026 it would shut its Northwood pulp mill in Prince George before the end of the year.
- A coalition of 15 forest industry groups and unions called BC's industry "at a breaking point" in a letter to the province.
