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Domtar closing Howe Sound pulp mill as B.C. approaches lowest pulp prices in 100 years
🇨🇦 Canada /Economy & Trade

Domtar closing Howe Sound pulp mill as B.C. approaches lowest pulp prices in 100 years

From Global News · () English

Summarized and contextualized by DistantNews.

At a glance

News Sources not specified Outcome reported
  • Domtar is permanently closing its Howe Sound pulp mill in British Columbia, impacting 350 workers.
  • The company cites seismic shifts in the global pulp market, with prices approaching 100-year lows due to competition from cheaper Southern Hemisphere hardwood pulp.
  • The B.C. government is engaging with Domtar to understand the challenges and plans to support affected workers and explore long-term solutions for the sector.

Domtar is permanently closing its Howe Sound pulp mill, a decision that will affect 350 workers and the Sunshine Coast community. Ravi Parmar, Minister of Forests, described the closure as an "indefinite curtailment" and acknowledged the profound impact on families and livelihoods.

These are not just jobs, these are livelihoods that have supported families and communities for generations.

— Ravi ParmarMinister of Forests, Ravi Parmar, commenting on the impact of the mill closure on workers and their families.

"These are not just jobs, these are livelihoods that have supported families and communities for generations," Parmar stated. He expressed the government's sympathy for those affected and affirmed their commitment to supporting workers through this transition with income and mental-health services.

Our hearts go out to every worker, every family and every business on the Sunshine Coast that will feel the effects of this decision.

— Ravi ParmarMinister of Forests, Ravi Parmar, expressing sympathy for those affected by the mill's closure.

The minister attributed the closure to a "seismic shift in the global pulp market," noting that prices are nearing historic lows. British Columbia's softwood pulp is struggling to compete with low-cost hardwood eucalyptus pulp from the Southern Hemisphere, a trend exacerbated by advancements in hardwood pulp technology.

British Columbia’s pulp sector is feeling the effects of a seismic shift in the global pulp market.

— Ravi ParmarMinister of Forests, Ravi Parmar, explaining the market conditions leading to the closure.

"Understanding the cause does not lessen our responsibility to act," Parmar added. The government plans to collaborate with local leaders, labor representatives, and workers to identify long-term solutions and help the sector adapt. This closure follows similar recent shutdowns, including Canfor's Northwood Pulp Mill in Prince George and Domtar's Crofton Mill on Vancouver Island.

We are currently approaching the lowest pulp prices in 100 years, when adjusted for inflation.

— Ravi ParmarMinister of Forests, Ravi Parmar, detailing the severity of the market downturn.
DistantNews Editorial

Originally published by Global News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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