Crofton pulp mill to shut down permanently as pressures grow in B.C. forest sector

A major employer on Vancouver Island is preparing to wind down permanently, with Domtar confirming that its pulp mill in Crofton will close and leave about 350 workers without jobs. The company says weak global pulp prices and rising challenges in securing affordable fibre in British Columbia made continued operations unsustainable.

Domtar says it is reviewing potential future uses for the mill site, though no decisions have been made. The shutdown adds to a series of closures across the province’s forestry communities, a sector that has faced years of instability linked to supply shortages, market volatility, climate-driven wildfires, and export pressures.

B.C. Forests Minister Ravi Parmar described the loss of employment in Crofton as devastating for families who rely on mill work and said the provincial government continues to confront multiple pressures affecting the industry, including conservation requirements and U.S. duties.

The Opposition Conservatives responded by calling for Parmar to step down, arguing the closure shows the coastal forest industry is in rapid decline. The shutdown follows West Fraser Timber’s announcement last month that its mill in 100 Mile House will also close permanently by late 2025, cutting roughly 165 positions.