Groupe Damabois has suspended activities at its sawmill in Cap-Chat and fired 25 workers [1] for an indefinite period.

The closure marks a significant blow to the local economy in Gaspésie-Îles-de-la-Madeleine, where the forestry sector remains a primary employer. This move follows the recent closure of two other plants operated by the company in eastern Quebec.

Company officials said ongoing supply-chain problems were a primary driver for the suspension [4]. The facility in Cap-Chat had previously faced operational interruptions, with some reports indicating activities were forced to stop in March 2024 [4]. Other accounts describe the suspension as a sudden move after the plant had been operating [2].

To address the crisis, the company presented a relaunch plan to the new forest minister, Jean-François Simard [4]. This proposal aims to stabilize the company's footprint in the region, and potentially restore operations at the affected sites.

The firing of 25 employees [1, 2] leaves a gap in the local workforce during a period of volatility for the provincial timber industry. The company has not specified a date for when operations might resume, leaving the future of the Cap-Chat site uncertain.

This is the third plant in eastern Quebec to face closure or suspension under the current management of Groupe Damabois. The sequence of shutdowns suggests a systemic struggle to maintain log supplies and operational costs across its regional network.

Groupe Damabois has suspended activities at its sawmill in Cap-Chat and fired 25 workers.

The suspension of the Cap-Chat sawmill reflects a broader instability in Quebec's forestry supply chain. By presenting a relaunch plan to Minister Simard, Groupe Damabois is signaling that its survival depends on government intervention or a restructuring of timber allocations. If the relaunch fails, the region faces a permanent loss of industrial capacity and a continued decline in rural employment.