Domtar to permanently close pulp mill in Howe Sound, B.C., costing 400 jobs

Domtar says it is permanently closing its Howe Sound pulp mill, affecting about 400 workers.

Company president Luc Thériault says it’s due to reduced demand from Asia, poor prices and a decline in affordable domestic fibre.

British Columbia Forests Minister Ravi Parmar says it’s an “immensely difficult day” for the Sunshine Coast, with the loss of livelihoods that have supported families and communities for generations.

Parmar says the government will be reaching out to affected communities to ensure workers get the help they need, including mental health supports.

Union Unifor says the closure is evidence of a “deepening crisis” in the forestry sector and the collapse of the industry is around the corner if governments don’t act.

The closure comes after the company announced it was shutting its Crofton mill in December, while Canfor announced the permanent closure of its Northwood mill in Prince George last month.

This report by The Canadian Press was first published Aug. 20, 2026.