B.C.'s Howe Sound Pulp and Paper announces mill operations stopping indefinitely

B.C.'s Howe Sound Pulp and Paper announces mill operations stopping indefinitely

Domtar says announcement will affect approximately 400 employees

Domtar has announced what it describes as the "indefinite idling" of operations at the Howe Sound Pulp and Paper mill on B.C.'s Sunshine Coast.

The announcement came during a town hall meeting for employees on Aug. 20 at the site in Port Mellon.

Domtar, the company that owns the mill, said operations at the Bayview Fibre chipping facility will also be idled.

The announcement will affect approximately 400 employees, the company says.

"We're just kind of in shock," said Andrew Appleton, a tugboat captain at the mill who has worked there for 22 years.

"It's something that, you know, I think we all thought that could happen down the road if things didn't get better."

"None of us thought it would happen so quickly.”

Appleton was at work on Thursday and said everyone was calling their families and loved ones to share the news. He was told employees' last day will be Oct. 19.

"Everybody's just kind of walking zombies right now at the mill, just trying to figure out what their next steps are,” Appleton said.

Back in 2015, the mill closed part of its operations, affecting up to 180 workers.

Luc Thériault, Domtar’s president said "the business cannot overcome reduced demand from Asia, unprecedented and sustained poor pricing for pulp globally, and a decline in affordable domestic [fibre]."

He said the business decision to indefinitely idle these facilities is the result of careful consideration and is not a reflection on employees.

"The teams at Howe Sound and Bayview Fibre worked tirelessly to improve performance but current market conditions require this step," Thériault said.

He added that he recognizes the hardship this decision will have on the employees of the facilities and the Sunshine Coast community as well as the coastal forest sector.

"The business will monitor market conditions, domestic [fibre] availability and the overall business environment, and will evaluate future opportunities if conditions improve,” Thériault said.

Appleton is not sure what he's going to do for work, but considers himself one of the lucky ones.

"I have my marine licence as the tug captain here, so I can hopefully get on to the ferries or something. I don't know what I'm going to do," Appleton said.

One person just moved to the Sunshine Coast to work at the mill after being laid off from another mill closing on Vancouver Island, according to Appleton. "There's a lot of people in my position that have been here a long time, and there's also people that just moved here," Appleton said.

Domtar announced back in December that it was permanently ending operations at its Crofton mill, affecting around 350 employees.

Appleton said many of the businesses in the area work closely with the mill and will be impacted.

"I just don't know how people are going to continue to operate heavy equipment and everything while we're thinking about this," he said.

Unifor National president Lana Payne said in a release that the "curtailment" of operations at Domtar's Howe Sound pulp and paper mill is evidence of a deepening forestry sector crisis and demanded immediate action from the B.C. and federal governments.

"Collapse of the forestry industry in the west, a core pillar of the economy, is just around the corner if governments don't act now," Payne said.

She said the union is disappointed with the decision.

"We are totally committed to working with the company and governments to find a solution," Payne said.

Forests Minister Ravi Parmar said in a written statement that he empathized with all those affected by the decision.

"We have been engaging with the company to better understand the full scope of the challenges it is facing," Parmar said. "We are prepared to work through the cross-government working group to identify practical, long-term solutions."

He said the pulp sector is feeling the effects of changes in the global market, with prices approaching their lowest in 100 years, when adjusted for inflation.

"We will be reaching out to the Sunshine Coast community immediately, working with local leaders, labour representatives and workers to ensure people get the support they need, including income and mental-health supports, as they navigate this transition," Parmar said.

Alanna Kelly is a CBC News journalist based in Squamish, B.C., covering the Sea-to-Sky region, including Whistler, Pemberton and the Sunshine Coast. You can email story ideas to alanna.kelly@cbc.ca.