Domtar to Restart Howe Sound Pulp Mill on B.C.’s Sunshine Coast

Domtar Corp. is set to restart the Howe Sound pulp mill in Port Mellon on British Columbia’s Sunshine Coast, six weeks after announcing plans to close the mill and chipping facility, putting about 400 jobs at risk.

Domtar said the restart decision was made in part because of efforts by the provincial government to work with the company. The mill had been slated for closure amid deteriorating markets and a decline in affordable domestic fibre.

“While the forest industry continues to face significant economic and competitive challenges, Domtar believes this collaboration represents an important first step toward supporting a strong and sustainable future for the sector and the communities that depend on it,” company spokesperson Guillaume Julien said.

“With the government’s support in place, the scheduled maintenance will proceed as planned, followed by the restart of the mill.”

On Sept. 4, Forestry Minister Ravi Parmar appointed negotiators to work with Domtar on efforts to restart the facility. Julien did not disclose the terms of the agreement between the company and the provincial government. In a September interview with Postmedia, however, he said a better deal with B.C. Hydro would help the company.

The mill supports about 400 direct jobs as well as sawmills, contractors, suppliers and local businesses in the region, according to Julien.

Unifor National President Lana Payne said an agreement between the government and Domtar had been reached, although workers represented by Local 1119 still need to ratify a new collective agreement next week.

Gibsons Mayor Silas White told the Coast Reporter that he had received confirmation the mill would restart in mid-October, with a full ramp-up scheduled for Nov. 1.