Domtar Indefinitely Idles Howe Sound Mill and Bayview Fibre Operations

Domtar has announced the indefinite idling of its affiliates’ operations at the Howe Sound mill and the Bayview Fibre chipping facility in Port Mellon, a decision that will affect approximately 400 employees.

The idling is expected to remove approximately 380,000 metric tons of northern bleached softwood kraft (NBSK) pulp from the market annually.

Domtar said the decision follows reduced demand from Asia, unprecedented and sustained poor pulp pricing globally, and a decline in the availability of affordable domestic fibre.

“Despite capital investment of nearly CAD$500 million since the mill was purchased in 2010, and the construction of the Bayview Fibre facility, the business cannot overcome reduced demand from Asia, unprecedented and sustained poor pricing for pulp globally, and a decline in affordable domestic fiber,” said Luc Thériault, Domtar’s President – Canada and CEO, Pulp and Wood Products.

Thériault said the decision was the result of careful consideration and was not a reflection on the employees at the two facilities.

“The teams at Howe Sound and Bayview Fibre worked tirelessly to improve performance but current market conditions require this step,” he added.

The company said it recognizes the impact the decision will have on employees, the Sunshine Coast community and the coastal forest sector. Domtar said it will continue to monitor market conditions, domestic fibre availability and the broader business environment and will evaluate future opportunities if conditions improve.

The company said safety and employee well-being will be its primary focus during the process of idling the facilities.