Another sawmill in northwestern Ontario is set to close indefinitely.
Domtar announced the decision to idle the Ignace sawmill once it completes processing its current log inventory, expected by March 12.
The closure is attributed to challenging market conditions and economic uncertainty, with weak lumber demand in North America necessitating production adjustments, according to Guillaume Julien, Domtar’s senior public affairs director.
Domtar had previously disclosed a 150 million board feet reduction in lumber production across its facilities in Quebec, Ontario, and the U.S. for the first quarter of 2026.
Ignace, a community of about 1,200 residents situated between Kenora and Thunder Bay, will be impacted by the shutdown of the sawmill, which employs approximately 25 workers and supports additional indirect jobs, as noted by Wesley Ridler of United Steel Workers Local 1-2010.
“The community is saddened by these developments,” said Jake Pastore, representing the Township of Ignace.
Although not entirely unexpected, indefinite shutdowns like these have significant local repercussions.– Jake Pastore, communications and outreach lead for the Township of Ignace
Concerns about softwood lumber prices and U.S.-Canadian tariffs have heightened the community’s understanding of the situation.
Elsewhere in the region, Ear Falls sawmill, operated by Interfor, is also facing an indefinite shutdown, while the Terrace Bay pulp mill has been non-operational since January 2024.
Amidst discussions on the impact of U.S. duties on Canadian softwood lumber imports, calls for a softwood lumber deal are gaining momentum.
Ridler emphasized the necessity of such a deal to prevent further sawmill closures in the province and country, especially in smaller communities heavily reliant on the industry.
The shutdown coincides with Ignace’s transformation phase, as it is being considered for hosting Canada’s first deep geological repository for nuclear waste, alongside Wabigoon Lake Ojibway Nation.
The proposed $26-billion facility, if approved, would bury Canada’s nuclear waste deep underground over a span of 160 years.
‘There’s a bit of a silver lining’
The Impact Assessment Agency of Canada is currently gathering public feedback on the nuclear waste project until Feb. 4, anticipating the permanent storage of about 5.9 million bundles of used nuclear fuel.
Despite opposition from some First Nations and environmental groups citing safety and environmental concerns, construction of the NWMO Centre of Expertise in Ignace is progressing, offering job opportunities.
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