In December 2025, Domtar announced it would permanently close its pulp mill in Crofton, on Vancouver Island, ending nearly seven decades of operation and eliminating about 350 jobs.
The company’s stated reasons were blunt: weak global pulp pricing and a lack of access to affordable fibre in BC. The mill had already received provincial and federal support in recent years – including an $18.8 million funding package in 2023 to modernize its production – but those efforts were unable to sustain operations.
For North Cowichan, the closure isn’t an abstract “sector adjustment.” Domtar has been the municipality’s single largest taxpayer, contributing about $5 million a year in property taxes, that fund services whether a mill is operating or not. Beyond the payroll, the shutdown lands on the people who make a living around the mill: logging contractors, truckers and mechanics, tug and barge operators, chip suppliers, and the smaller businesses that live off the rhythm of coastal forestry.
Crofton is part of a broader pattern: shrinking harvest, mill closures, and a wood supply that no longer matches planning projections. The closure illustrates the downstream consequences of a deeper planning issue.
