Domtar to Halt Operations at Ignace Sawmill in Ontario by March 2026

PAPER INDUSTRY NEWS

Jino John

1/15/20261 min read

Domtar will indefinitely shut down its sawmill in Ignace, Ontario, on March 12, resulting in about 25 job losses. The closure forms part of a broader reduction of 150 million board feet in lumber production across Canada and the U.S. starting early 2026.​

CEO Luc Thériault attributed the decision to low North American demand, noting impacts on workers, suppliers, and communities. Domtar plans ongoing production adjustments in response to market conditions.​

Jake Pastore, outreach lead for Ignace Township, confirmed the municipality received notice and intends to meet with mill management. United Steelworkers union representative Wes Ridler linked the shutdown to trade issues, including a 10% tariff and 35% countervailing duty amid stalled Canada-U.S. softwood lumber negotiations.​

The facility faced a temporary closure in December 2025 following U.S. withdrawal from trade talks, alongside a production slowdown announced in November 2024.