Ignace sawmill facing indefinite shutdown

SEATTLE (Scrap Monster): The sawmill in this township along Highway 17 will be shutting down indefinitely in March.

An Ignace spokesperson said Tuesday the township has been advised that the mill, owned by Domtar, will be shut down on March 12.

“We are going to be meeting with (the mill’s management) in the very near future,” township outreach lead Jake Pastore told Newswatch.

A Domtar representative, speaking on background, confirmed the March 12 shutdown date and said the reasons for the decision are in a Jan. 13 news release from the company.

Domtar announced in a news release that it will reduce in the first quarter of 2026 by 150 million board feet across its facilities in Canada and the United States.

“Demand for lumber in North America remains weak, forcing us to adjust our production levels based on market conditions,” Domtar’s CEO, Luc Thériault, is quoted as saying in the release.

“While this decision is necessary, we are fully aware of the impact it will have on our employees, contractors, suppliers and the communities in which we operate.”

The news release said the company “will continue to monitor changing market conditions and adjust its production plans accordingly.”

Wes Ridler, business representative for the United Steelworkers local representing Ignace sawmill workers, said the shutdown affects about 25 inside and outside employees.

“I’m very saddened to hear about this,” he added. “It’s very difficult to have that happen in Ignace.”

Shutdowns and layoffs in the industry are not surprising in these uncertain times, Ridler said.

“You know, we do not have a softwood lumber agreement (between Canada and the U.S.) right now. We've got a 10 per cent tariff, and we've got a 35 per cent countervailing duty, for a total of 45 per cent.

“It's insane that sawmills in this country have to deal with that, but they do. Until we get some sort of softwood lumber deal in place, this is going to continue to happen in this province and in this country.

“It's a really difficult time for the Canadian producers to operate.”

In an Ignace group on Facebook, one user commented that the shutdown is “not unexpected. How many times in the past has this happened?”

The sawmill was temporarily shut down in December 2025 after the U.S. pulled out of trade talks with Canada. A slowdown in mill operations was announced in November 2024. 

 Courtesy: www.investing.com