A sawmill in northwestern Ontario is shutting down for the foreseeable future.
Domtar announced on Tuesday that the Ignace sawmill will cease operations once its current log stock has been processed, which should be completed by March 12.
“These decisions are driven by challenging market conditions and ongoing economic uncertainty. Lumber demand in North America remains weak, requiring Domtar to align production levels with current market realities,” Guillaume Julien, senior director of public affairs for Domtar, said in an emailed statement on Wednesday.
“In addition, tariffs and broader economic pressures continue to weigh heavily on the forest products sector.”
Earlier, Domtar stated it is temporarily cutting its lumber output by 150 million board feet across its facilities in Quebec, Ontario and the United States for the first quarter of 2026.
About 1,200 residents live in Ignace, located along Highway 17 between Kenora and Thunder Bay. The Ignace sawmill employs around 25 people but also supports several other indirect jobs, according to Wesley Ridler, a business representative for United Steel Workers Local 1-2010.
“The community’s saddened by what’s happening,” said Jake Pastore, communications and outreach lead for the Township of Ignace, on Wednesday.
I don’t think it comes as a complete shock to folks, but nonetheless, when these indefinite shutdowns happen in the community, there’s always significant impact.- Jake Pastore, communications and outreach lead for the Township of Ignace
He added that “the community also understands what’s happened with softwood lumber prices and what’s going on with U. S.-Canadian tariffs.”
In other parts of northwestern Ontario, towns are dealing with an indefinite closure of Interfor’s sawmill in Ear Falls that was announced in October as well as the ongoing shutdown of the Terrace Bay pulp mill since January 2024.
“I don’t think it comes as a complete shock to folks; however when these indefinite shutdowns happen in the community there’s always significant impact,” Pastore said.
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About 25 workers will be affected by the shutdown of the Ignace sawmill according to the local United Steelworkers branch. (CBC)
This closure happens while Ignace is undergoing changes.
The Nuclear Waste Management Organization (NWMO) has chosen this township along with nearby Wabigoon Lake Ojibway Nation as a preferred host community for Canada’s first deep geological repository.
If approved, this project would involve burying Canada’s nuclear waste hundreds of metres underground within a proposed $26-billion facility built between both communities.
Why this Ontario town agreed to take Canada’s nuclear wasteThe northern Ontario community of Ignace has accepted being home to Canada’s nuclear waste. The National’s Nick Purdon visited the region to explore why most people supported this move and how toxic materials will be stored deep underground.
Meanwhile, efforts are underway to create NWMO Centre of Expertise in Ignace which “will include technical research programs alongside social research initiatives plus demonstrations showcasing packaging processes before placing containers containing used nuclear fuel into repositories,” according to information provided on NWMO’s website.
This combined effort along with plans for constructing new housing developments locally will generate additional job opportunities according to Pastore.
“I think there’s a bit of silver lining here considering those who may face displacement from Domtar,” he remarked. “Their skills including services or trades will likely be needed over these next six months or so.”
As Ignace prepares possibly welcome more residents if approval comes through concerning their nuclear waste site plans Pastore shared plenty initiatives are actively aimed at diversifying their economy.
“We’re positioning ourselves into markets less susceptible cyclical downturns,” he mentioned.
“There’ll definitely still remain opportunities available especially those choosing stay put here.”
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Calls for a softwood lumber deal
The U. S. duties on Canadian softwood lumber imports now stand at 45 percent. “It’s very difficult for Canadian producers to operate under those conditions; we really need a softwood lumber agreement to prevent this trend from continuing – with sawmills closing down across both our province and country,” Ridler commented. He mentioned that smaller communities without large employers find it “even tougher.”‘There’s a bit of a silver lining’
The Impact Assessment Agency of Canada states that this nuclear waste project is expected to last about 160 years providing permanent storage for approximately 5.9 million bundles of used nuclear fuel. The agency is gathering public feedback until Feb. 4 to inform its next assessment phase. This initiative has faced pushback from various First Nations groups and environmental organizations due to concerns regarding potential safety risks and environmental impacts. WATCH | Why this Ontario town agreed to take Canada’s nuclear waste:
Why this Ontario town agreed to take Canada’s nuclear wasteThe northern Ontario community of Ignace has accepted being home to Canada’s nuclear waste. The National’s Nick Purdon visited the region to explore why most people supported this move and how toxic materials will be stored deep underground.
Meanwhile, efforts are underway to create NWMO Centre of Expertise in Ignace which “will include technical research programs alongside social research initiatives plus demonstrations showcasing packaging processes before placing containers containing used nuclear fuel into repositories,” according to information provided on NWMO’s website.
This combined effort along with plans for constructing new housing developments locally will generate additional job opportunities according to Pastore.
“I think there’s a bit of silver lining here considering those who may face displacement from Domtar,” he remarked. “Their skills including services or trades will likely be needed over these next six months or so.”
As Ignace prepares possibly welcome more residents if approval comes through concerning their nuclear waste site plans Pastore shared plenty initiatives are actively aimed at diversifying their economy.
“We’re positioning ourselves into markets less susceptible cyclical downturns,” he mentioned.
“There’ll definitely still remain opportunities available especially those choosing stay put here.”
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