Multiple Buyers Express Interest in Former Domtar Crofton Pulp Mill Site

Numerous companies and investors have expressed interest in purchasing the former Domtar pulp mill site in Crofton following the facility’s closure earlier this year.

Domtar said it is exploring several options for the future of the waterfront property. North Cowichan Mayor Rob Douglas said the municipality has also been approached directly by interested parties considering a range of industrial uses for the site, including manufacturing and energy production.

“The current owner (Domtar) and the provincial government are likewise receiving a broad array of similar proposals,” Douglas said.

According to Douglas, Domtar has retained BMO Capital Markets to assess potential purchase proposals and is expected to decide on the site’s future in the coming months.

Douglas noted that decisions regarding the future use of the property will ultimately rest with Domtar or a future owner, rather than the municipality, and encouraged interested parties to contact the company directly. He added that North Cowichan would welcome updates on proposals due to the site’s importance to the local community.

The Crofton pulp mill had operated since 1957 before shutting down amid continued weak pulp pricing and limited access to affordable fibre in British Columbia. More than 350 employees lost their jobs as a result of the closure.

The facility had also been the largest single taxpayer in North Cowichan, contributing approximately $5 million annually to municipal revenues.

Domtar said the site is currently being secured and “de-risked,” including the removal of major chemicals, fibre and fuels from the facility.