ATIKOKAN — Sawmills near Atikokan and Ignace will temporarily shut down over the Christmas holidays.
United Steelworkers Local 1-2010 president Jacques Jean confirmed to Newswatch both facilities will pause operations for just over two weeks starting Dec. 19, with a scheduled re-start on Jan 5, 2026.
He said it’s an unusual move — particularly for the facility in Sapawe, located about 30 kilometres east of Atikokan. The Ignace sawmill saw a month-long shutdown last Christmas, along with a halving of its operating hours as of Nov. 25, 2024.
Domtar, which owns both sawmills, hasn’t responded to a request for comment from Newswatch.
In Atikokan, Mayor Rob Ferguson said he was informed by mill management in mid-October about the planned idling, saying the company is taking some of their inventory “out of the market.”
“It’s a little concerning to some people because … some of the workers that have been there have never been shut down at Christmas time,” he told Newswatch. “So, when they hear other things going on, they get a little a little nervous (like) ‘are they going to go back?’”
“But Domtar has said that it is only an inventory layoff and they will have full intentions of going back in January.”
The announcement of the two mills idling comes on the heels of Interfor indefinitely shutting down its Ear Falls operation, although the company has told Newswatch it is evaluating that “curtailment” on a week-to-week basis.
The Ontario Forest Industries Association has said heightening tariffs on softwood lumber by U.S. President Donald Trump have made an already tough situation worse for Canada’s lumber industry and the companies in it. Duties and tariffs on softwood lumber have tripled to 45 per cent in a matter of months.
On the other hand, Ferguson said, it’s an opportunity for workers to get some guaranteed time off with their families over the holidays.
“A lot of people want to enjoy the holidays and they want vacation at that time,” he said.
Ferguson said any shut downs do have cascading effects.
“All the forest industry is so intertwined in it’s such a circular economy that when one group goes down, it affects everybody else,” he said. “So, when Domtar takes a shutdown, then the pellet (peaking power) plant here loses some of their fibre supply.”
“When one piece comes out of the puzzle, it has a ripple effect on everybody.”
Aikokan Economic Development Corporation executive director Garry McKinnon said he understands any concerns people in town may have, especially with other facilities — like Ear Falls and Kap Paper — facing uncertain futures. But he said he’s confident Atikokan is in a better position.
“You know the industry is under pressure, but we’re pretty confident in the corporation that operates the mill at Sapawe and in local management,” he said.
“Keep in mind, it’s one of the newest, most modern, most productive mills in Canada, so I would speculate that it might be the last one to close.”
