CANADA (From news reports) -- A mill in Chemainus that halted production in July will remain closed until the end of this year.

A Western Forest Products spokesperson said Saturday that the extended closure is because of "weak market demand, the impact of high tariffs and ongoing log supply challenges."

About 120 employees were laid off in July, with hopes they would return to work this year.

North Cowichan Mayor Rob Douglas said he's devastated by the news of the extended curtailment, which comes after the permanent closure of the Domtar Crofton pulp and paper mill in December.

"It's a big hit to our community," he said, adding that he's worried about the ripple effect the closure will have on industry and small businesses in Chemainus and the surrounding area.

Douglas said the two mills provide about $6 million annually in property taxes.

"We have to be hopeful," said Douglas. "Some of these folks have spent decades in the forest industry."

He said the provincial government worked to create a "Community Transition Table" in December that connects workers facing unemployment with support.

Douglas said an information session for Crofton and Chemainus mill workers is set for Tuesday at the Crofton Community Centre, from 2 p.m. to 7 p.m., featuring WorkBC, Service Canada, Skilled Trades B.C. and Vancouver Island University.

Curtailments are planned at other Western Forest Products sites on Vancouver Island beginning in February, the company said.

Its Ladysmith and Saltair sawmills are facing two-week operating curtailments, which the company said are because of weak market conditions and issues with the B.C. operating environment.

It said those include "a lack of available economic log supply, ongoing harvesting permitting delays and the strike by the United Steelworkers Local 1-1937 at the La-kwa sa muqw Forestry Limited Partnership."

Western Forest Products did not comment on how likely the Chemainus mill is to reopen in 2027.

"We recognize that curtailments have a direct impact on our employees, and our goal is to operate as consistently and sustainably as possible," the spokesperson said.