British ColumbiaIn a statement, the company says the pulp operations at the mill in Crofton, about 70 kilometres north of Victoria, have been struggling for a while. Company says closure will affect around 350 employeesMaryse Zeidler · CBC News · Posted: Dec 02, 2025 7:24 PM EST | Last Updated: 1 hour agoListen to this articleEstimated 4 minutesThe audio version of this article is generated by text-to-speech, a technology based on artificial intelligence. Domtar says the pulp mill in Crofton, B.C., on Vancouver Island is closing permanently, affecting around 350 employees. (© Lilo PhotoDesign)The company that runs a pulp mill on Vancouver Island says it is permanently ending operations at the facility, affecting around 350 employees. In a statement, Domtar says pulp operations at the mill in Crofton, about 70 kilometres north of Victoria, have been struggling for a while. “Over the last 18 months, Crofton employees worked hard to reduce operational costs and they made some extraordinary gains,” said Domtar paper and packaging president Steve Henry.”Unfortunately, continued poor pricing for pulp and lack of access to affordable [fibre] in B.C. necessitates the closure.”Last year, Domtar announced that it was indefinitely halting paper operations at the site, which affected around 75 employees at the time. Read more news from Vancouver IslandDomtar, formerly called Paper Excellence, confirmed that this latest curtailment will permanently close the entire site. The company says the site will continue to be managed in compliance with environmental laws, and it’s “exploring a variety of possibilities for the future of the site.”LISTEN | Forests Minister ‘deeply concerned’ by latest mill closure:All Points West10:04B.C. Minister of Forests responds to Crofton mill closureB.C. Minister of Forests Ravi Parmar speaks to CBC’s Jason D’Souza about Domtar permanently closing its mill in Crofton, putting about 350 people out of work.In an interview with CBC News, Domtar spokesperson Chris Stoicheff clarified that the mill will cease operations on Dec. 15 but most staff will still be employed at the mill until mid-February, some until April. Stoicheff says the company has three remaining mills in B.C.Devastating news for the community: mayorNorth Cowichan Mayor Rob Douglas says the news is “devastating” for his community.”News like this is always tough, but right before the Christmas holidays just makes that much more difficult,” Douglas told CBC News. “These are people with mortgages, families to support, bills to pay.”Douglas says the closure will also affect businesses throughout the region that depend on the mill’s economic activity. He says the mill generated around $5 million in property taxes each year. “We’re scrambling now just as a municipality to figure out how we’re going to continue to deliver our services,” he said.Opposition calls for forests minister’s resignationIn a written statement, the Opposition B.C. Conservatives called for the resignation of Forests Minister Ravi Parmar.”The closure of the Crofton Pulp Mill is a clear sign that B.C.’s coastal forest sector is collapsing right before our eyes,” the party said.”This closure leaves 350 workers and their families without [paycheques] heading into the holiday season, and follows years of NDP-managed decline driven by regulatory uncertainty, delayed permitting, and policy failures that are pushing investment and jobs out of British Columbia.”Protests held province-wide urging forestry reform, targeting B.C. Timber SalesThe Conservatives recommend several solutions for the province’s forestry sector, including speeding up permits, rebuilding the workforce through skills training and taking “a real stand on internal trade barriers and foreign tariffs.”Changes to B.C. Timber Sales as province’s forest industry faces pressure: minister’Gut-punching news’: forests minister Minister of Forests Ravi Parmar told All Points West host Jason D’Souza that the announcement was “gut-punching news for the people of Crofton and the Cowichan Valley.”But Parmar said the forestry sector has been struggling for a long time due to a variety of factors, many of them driven by low prices for pulp. “We have seen a boom and bust of the forest sector for too long — certainly my entire life living here on the Island. And so we need to talk about stabilization. We need to talk about transformation,” Parmar said.”If there was an easy solution, an easy fix, I think we would have made this a long time ago.” Parmar says the province doesn’t have a lot of logging permits awaiting approval right now, primarily because of low lumber prices partly caused by U.S. tariffs. The minister says he will do everything he can to ensure there are good-paying jobs for people in the Cowichan Valley. WATCH | What do 45% tariffs mean for B.C.’s forestry sector?:What do 45% tariffs mean for B.C.’s forestry sector?The U.S. slapped a 10 per cent tariff on Canadian softwood lumber on top of a 35 per cent tariff that was already in place. As a result, B.C.’s forestry industry, which employs tens of thousands of workers, is facing dire conditions, with ongoing cuts and closures at mills and forestry companies around the province. Harry Nelson, an associate professor at the University of British Columbia’s forestry faculty speaks to CBC’s Dan Burritt, explaining what these tariffs mean for B.C.’s forestry sector.ABOUT THE AUTHORMaryse Zeidler is an award-winning reporter who covers news from Nanaimo and north Vancouver Island. Have a news tip? You can reach her at maryse.zeidler@cbc.ca.
Domtar announces permanent closure of mill in Crofton, B.C.
