In a gut-wrenching blow to Vancouver Island’s economy, Domtar has announced the permanent shutdown of its Crofton pulp mill, thrusting 350 long-time employees into uncertainty just weeks before the holidays. The facility, a cornerstone of the Cowichan Valley since 1957, will halt production by mid-December, marking yet another casualty in British Columbia’s beleaguered forest industry.
The news, dropped on December 2, 2025, has sent shockwaves through the tight-knit community of Crofton, where the mill has been more than a workplace—it’s been a lifeline for generations. Domtar cited “continued poor pricing for pulp and lack of access to affordable fibre in B.C.” as the driving forces behind the decision, despite recent cost-cutting efforts by the workforce that yielded “extraordinary gains.” The closure will slash the company’s annual softwood pulp output by about 380,000 metric tons, a stark reminder of market volatility that’s hammered the sector for years.
For context, the Crofton mill—Domtar’s largest bleached-chemi-thermo-mechanical pulp (BCTMP) producer—employs around 350 people, many earning upwards of $100,000 annually in a region where forestry jobs are gold. Production ceases mid-December, but the company plans to retain staff through February or April 2026 for site maintenance and potential decommissioning, offering a slim buffer for severance negotiations and job hunts. Domtar operates three other B.C. mills, including one in Port Alberni, but this loss hits hardest in Crofton, a village of just 1,000 where the mill’s smokestacks have defined the skyline for nearly seven decades.
The backstory paints a grim picture of an industry under siege. B.C.’s coastal forestry has shed thousands of jobs since the 2008 financial crash, exacerbated by low pulp demand, wildfire devastation, and U.S. tariffs. This follows West Fraser Timber’s announcement last month to shutter its 100 Mile House lumber mill, axing 165 positions by year’s end. Domtar’s Steve Henry, president of paper and packaging, acknowledged the pain in a statement: “We recognize the hardship this decision will have on both our employees and the Cowichan Valley community.” The firm is eyeing redevelopment options for the 100-acre site, but details remain scarce.
Reactions have been swift and searing. North Cowichan Mayor Rob Douglas called it “devastating” for workers and families facing Christmas without paychecks, urging provincial support for retraining and economic diversification. The BC Council of Forest Industries, led by CEO Kim Haakstad, expressed “deepest concern” and solidarity, while Forests Minister Ravi Parmar labeled it a “painful, unfair moment” driven by global pressures like volatile markets and conservation policies. Opposition Conservatives didn’t hold back, blasting the NDP government for “regulatory uncertainty and policy failures” that they say are collapsing the sector—demanding Parmar’s resignation and warning of a “one mill away from total collapse” scenario.
On X and local forums, the outpouring is raw: Hashtags like #SaveCroftonMill and #BCTimberCrisis trended regionally, with union reps from Unifor Local 603 vowing to fight for robust severance packages. Forestry analyst Dr. Robert Kozak, from the University of British Columbia, weighed in via CBC: “This isn’t isolated—it’s symptomatic of fibre shortages and a shift to recycled pulp globally. Without innovation in biofuels or bioproducts, more closures loom.” Community leaders are mobilizing food banks and counseling services, fearing a ripple of foreclosures in a town where mill wages propped up schools, shops, and sports leagues.
For everyday British Columbians—and Americans with ties to cross-border trade—this hits on multiple fronts. Economically, the $35 million in annual wages evaporates, potentially shaving millions from local GDP and straining provincial coffers for employment insurance claims. The forestry sector, which employs 55,000 across B.C., faces a 10% job cull this year alone, amplifying housing affordability woes in rural hotspots like Vancouver Island. Politically, it fuels debates over green policies versus resource jobs, with Conservatives eyeing 2026 votes by pitching tax breaks for mills. Tech angles emerge too: Calls for AI-optimized supply chains to predict fibre shortages, or drone mapping for sustainable logging, could spark innovation hubs in places like Victoria.
Lifestyle shifts loom large for the displaced workers—many third-generation foresters—who’ll pivot to tourism gigs, trucking, or retraining in renewables. One veteran operator told CTV: “We’ve bled for this place; now it’s on us to rebuild.” As Domtar scouts buyers and government pledges aid packages, the Crofton closure isn’t just a mill’s end—it’s a wake-up call for B.C.’s timber heartland. With wildfires raging and markets fickle, diversification feels urgent, but for these 350 families, survival starts now. The holidays will be lean, but resilience runs deep in the Valley.
*By Mark Smith*
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