Paper operations indefinitely halted at Vancouver Island mill, company says

Pulp and paper giant Paper Excellence announced Thursday it will indefinitely halt paper-producing operations at the Catalyst Crofton facility on Vancouver Island.

The announcement comes just over a year after the mill, located in Crofton in the North Cowichan region, received $18.8 million from the provincial and federal governments to resume pulp and paper operations.

Approximately 75 employees are affected by the indefinite curtailment, according to Paper Excellence, which says the decision was due to multiple factors. Those include inflationary pressures on raw materials, energy costs, and a lack of domestic fibre supply.

"We recognize the difficulty this decision has placed on both our employees and the Cowichan Valley community," read a statement from Blair Dickerson, the company's vice-president of public affairs. "We will work to minimize negative impacts wherever possible."

Paper Excellence says its pulp operations, which employ 400 people, will continue production during the indefinite paper production curtailment.

Tanner McQuarrie, president of Unifor Local 1132, said his members saw the suspension of operations coming after numerous curtailments were extended over the last year.

"The most emotion I felt today was sadness over anything," he said. "A lot of people are affected when they were dragged along thinking there's a positive future."

McQuarrie said employees are frustrated.

"It's just frustration with the company that had had the gall to bring up the premier of the province to our site, promised saving all of our jobs and then dragging us along with all the federal money and provincial money and stuff."

Concern over job loss

Rob Douglas, mayor of the District of North Cowichan, said the curtailment would be devastating to his community.

"The Crofton pulp paper mill [is] our biggest single taxpayer in the municipality and also one of our largest employers," he said. "It's not only the direct jobs from the operations there, but also the the indirect jobs and the contributions to our broader regional economy."

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Douglas added that local officials had been hopeful the government funding would lead to a bright future for paper workers in the North Cowichan region.

Jobs Minister Brenda Bailey acknowledged the curtailment is among a number of forestry operations shuttering in B.C.

"My first reaction is just really thinking about those people who've been impacted and the families who are feeling that very bad news today," she said. "I can tell you I come from the forestry family. In fact, my dad's first job was at this very mill, the Crofton mill, and it's really difficult news for people."

Bailey pointed to her government's manufacturing jobs fund and the rural economic diversification and infrastructure program as ways the province is looking to diversify its manufacturing sector and encourage companies to set up industries in B.C. amid the job cuts.

Catalyst Paper also employs around 400 employees in its pulp producing section, which is unaffected by the latest curtailment. (CBC)

Union leader McQuarrie says he does not see a future for paper manufacturing in B.C. amid the job cuts, and asked for Paper Excellence to be held accountable "under a microscope" for their actions after receiving government funding.

For its part, the company said it thanked the federal and provincial governments for their efforts to support the mill.

"The company will respect the terms and conditions of all contribution agreements affected by this indefinite curtailment and will work with the appropriate government agencies on the next steps," its statement read.