Government officials, including Premier David Eby (centre) toured the Crofton pulp mill in 2023 as part of provincial funding to help stabilize their operations. The mill announced Tuesday, Dec. 2, they were closing permanently. (BC Government)

By NanaimoNewsNOW Staff

mill closure

Crofton pulp mill, south of Nanaimo, closing permanently

Dec 2, 2025 | 4:31 PM

NANAIMO — A large pulp mill south of the city is shutting its operations for good.

Mill owner Domtar Inc. announced on Tuesday, Dec. 2, citing “poor pricing for pulp and lack of access to affordable fibre in B.C.” as the primary reason behind its decision.

Around 350 workers, largely from the central Island, are affected, with the closure expected to take effect early next year.

Reaction to the decision has been swift, including a statement from the B.C. Council of Forest Industries (COFI), which said the move is the result of “inaction for the struggling forestry sector” by senior levels of government.

“We have been sounding the alarm that the situation in BC is dire, and today is further evidence that the sector needs an urgent response from our government, Kim Haakstad, president and CEO of COFI said in the statement. “While softwood lumber duties and trade uncertainty add significant pressure, not everything can be blamed on the dispute.”

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Haakstad said the province and industry need to “focus on the areas within our control”, including access to a predictable and economically sound wood supply.

The opposition B.C. Conservatives made a public call for the resignation of forests minister Ravi Parmar, who said the mill’s closure was “a clear sign that B.C.’s coastal forest sector is collapsing right before our eyes.”

“We’ve been clear about what needs to happen: speed up permits, scrap the broken stumpage model, move to a fibre-based AAC, rebuild the workforce through skills training and emergency support, ban glyphosate aerial spraying, restore proper wildfire management, and take a real stand on internal trade barriers and foreign tariffs.”

The provincial government awarded $6.65 million in funding to the mill in August 2025 to improve emissions from the facility.

A combined $18.8 million in provincial and federal funding was announced in January 2023 to ensure the security of the mill’s future as it shifted into new pulp products, which reduced the need for single-use plastics.

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