One-hundred-and-forty people have lost their jobs after Irving Paper, Limited, one of the biggest employers in New Brunswick, announced it is shutting down 50 per cent of its operations in the province on Monday.
In a news release, Irving said it was downsizing due to “New Brunswick’s uncompetitive industrial electricity rates.” Irving Paper, which is located on Bayside Drive in Saint John, currently directly employs 310 people.
“As New Brunswick manufacturers face more and more significant headwinds, it is becoming increasingly difficult to shoulder the impact of soaring electricity costs and remain competitive in an international market,” said Mark Mosher, Irving Pulp and Paper vice president, in the release.
“We have been working collaboratively with the current Government of New Brunswick toward a solution, but presently there is no viable alternative for full operation of both paper machines.
“Over the next number of weeks, we will continue to work with the provincial government to try to develop a plan to allow the continued operation of the remaining 50 per cent of the mill, prior to the additional 10 per cent electricity rate increase on April 1, 2025.”
John Herron, minister of Natural Resources, said he is “deeply saddened for the New Brunswickers who will be affected” by the downsizing.
“The Department of Natural Resources has been actively working with JD Irving over the past number of weeks to develop a durable solution that is financially sustainable and retains jobs for New Brunswickers,” Herron said in an email. “We will continue to work with them as power rates shouldn’t be the reason for New Brunswickers losing their employment. Irving Paper is an important component of the province’s integrated forestry value chain and is vital to the sector.”
Ron Marcolin, divisional vice president with Canadian Manufacturers and Exporters, says he’s saddened to see 140 well-paying jobs go out the door.
“It’s unfortunate because of the trickle-down effect with supply chains. Irving Paper buys a lot of product from a lot of communities in the province of New Brunswick, and quite frankly, they support a lot of well paying jobs internally and externally to their operation,” said Marcolin.
Marcolin says New Brunswick heavy industrial companies pay approximately 25 per cent more on their power rates compared to other provinces.
“The impact will be seen quick. There will be some resulting inventory that they will have to use up, but it will even trickle down to woodlot owners for example, and people that supply obviously the wood, the raw material to the plant,” he said.
“They will be affected because part of their market has now just evaporated as well. It will be very quick unfortunately and it will sting. No doubt about it.”
Last December Irving Paper reduced operations by 50 per cent for a week in response to what it called “record high” industrial electricity rates. It made a similar reduction for an undefined period in January.
More than 95 per cent of Irving Paper’s annual manufacturing output of 400,000 tonnes of paper is exported to 65 countries.
The facility manufacturers graphic paper for use in magazines, catalogs, newspapers and advertising flyers.
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