Irving Paper has announced the permanent shutdown of 50% of its operations, citing uncompetitive industrial electricity rates in New Brunswick as the primary reason. The decision, which takes effect immediately, impacts 140 employees.
Mark Mosher, Vice-President of Irving Pulp & Paper, addressed employees, emphasizing the difficulty of the decision. “Our employees are not just colleagues, they’re family. That’s why the decision to permanently downsize is a difficult one, but necessary to ensure the company’s long-term sustainability in the face of skyrocketing electricity rates,” Mosher stated. He added that supporting affected team members is now the company’s top priority.
Irving Paper is working closely with government agencies to assist displaced workers during the transition. Mosher highlighted the broader challenges faced by manufacturers in the province, noting that high electricity costs are making it increasingly difficult to compete in global markets. “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,” he explained. “Over the next few weeks, we will continue discussions with the provincial government to try to develop a plan to maintain the remaining 50% of the mill’s operations before the additional 10% electricity rate increase takes effect on April 1, 2025.”
Irving Paper, located at 435 Bayside Drive in Saint John, is a key player in the graphic paper industry, producing paper for magazines, catalogs, newspapers, and advertising flyers. The facility currently employs 310 people and collaborates with over 300 suppliers across New Brunswick. In 2023, it generated $144 million in purchases across 40 communities. Additionally, it is a major consumer of wood chips from provincial sawmills, supporting private woodlots and marketing boards.
Over 95% of the company’s 400,000-tonne annual production is exported to 65 countries. Mosher lamented the shutdown, stating, “Irving Paper is a world-class facility that we have invested significant resources in to be top quartile in virtually every category, including energy efficiency. Seeing a facility like ours partially shut down due to uncompetitive electricity rates marks a sad day for many.”
The company remains committed to exploring potential solutions to preserve its remaining operations and mitigate further job losses.
