The holiday season has turned bleak for hundreds of families on Vancouver Island as pulp and paper giant Domtar announced the permanent closure of its Crofton mill, eliminating 350 jobs just weeks before Christmas.
A Permanent Shutdown Due to Wood Supply Issues
On Tuesday, the company confirmed the 60-year-old facility would cease operations, citing an unsustainable lack of access to affordable wood in British Columbia as the primary reason. While the main operations will halt on December 15, 2025, a skeleton crew will remain until February to manage the shutdown process.
"These decisions are made with careful consideration and we recognize the hardship this decision will have on both our employees and the Cowichan Valley community as well as our business partners and the coastal forest sector," stated Steve Henry, Domtar's President of Paper and Packaging.
Devastating Ripple Effects for the Cowichan Valley
The closure is a severe economic hit for the community of Crofton, located halfway between Victoria and Nanaimo. North Cowichan Mayor Rob Douglas, whose grandfather helped build the original mill, called the news "devastating."
"Once you lose those good union jobs, it’s pretty tough to get them back," Douglas said. "These are real people being impacted by this. They have families to support, mortgages, and they’re paying bills and supporting other businesses. It affects our entire community."
The region is still reeling from another major forestry blow earlier this year, when 150 workers were laid off in June at a Western Forest Products mill in nearby Chemainus.
Political Reaction and Industry-Wide Concerns
The announcement prompted immediate political response. B.C. Forests Minister Ravi Parmar described the closure as "gut-wrenching for workers." Mayor Douglas was scheduled to meet with Premier David Eby, Minister Parmar, and Labour Minister Jennifer Whiteside to discuss potential government support and next steps.
B.C. Conservative MLA Aaron Gunn connected the closure to broader challenges facing the province's forestry sector, noting recent job losses in 100 Mile House and linking the industry's struggles to the failure to secure a new softwood lumber agreement with the United States.
Domtar officials emphasized that employee safety and well-being are their immediate focus. The company also stated it is exploring "a variety of possibilities" for the future of the mill site, though no specific plans were revealed.
