BC government moves to head off Domtar Howe Sound pulp mill closure
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.