Another lumber mill in northwestern Ontario is set to close indefinitely. Domtar has announced the suspension of operations at the Ignace sawmill, pending completion of its current log inventory by March 12. Guillaume Julien, senior director of public affairs at Domtar, cited challenging market conditions and economic uncertainty as the reasons behind the decision. He mentioned the weak lumber demand in North America necessitating production adjustments. Additionally, tariffs and broader economic factors are impacting the forest products industry.
Domtar previously disclosed a reduction of lumber production by 150 million board feet across its facilities in Quebec, Ontario, and the United States for the first quarter of 2026. The Ignace sawmill, employing around 25 people and supporting numerous indirect jobs, plays a significant role in the community of about 1,200 residents.
Jake Pastore, communications and outreach lead for the Township of Ignace, acknowledged the community’s dismay over the shutdown. He highlighted the impact of such closures on the community, emphasizing the challenges posed by softwood lumber prices and U.S.-Canadian tariffs. Similar situations are unfolding in other northwestern Ontario towns, including the indefinite shutdown of Interfor’s sawmill in Ear Falls and the continued closure of the Terrace Bay pulp mill since January 2024.
Calls for a softwood lumber deal have intensified due to the current 45% U.S. duties on Canadian softwood lumber imports. Wesley Ridler, a business representative for United Steel Workers Local 1-2010, stressed the need for a resolution to prevent further mill closures, particularly in smaller communities heavily reliant on the lumber industry.
Despite the disruptions caused by the sawmill closure, Ignace is undergoing a transformation phase with the potential establishment of Canada’s first deep geological repository for nuclear waste. The Nuclear Waste Management Organization (NWMO) has selected Ignace and the Wabigoon Lake Ojibway Nation as preferred host communities for the repository project, offering long-term job prospects and economic development opportunities.
As the community anticipates potential growth linked to the nuclear waste project, efforts are underway to diversify the local economy. Initiatives such as the NWMO Centre of Expertise and a new housing subdivision aim to create employment opportunities and stabilize the economy in Ignace.
The shift towards economic diversification signals a positive outlook for the community, aiming to reduce dependence on cyclical industries and create sustainable growth prospects for Ignace residents.