Uncertainty hangs over Nackawic after pulp mill announces temporary shutdown
A pulp mill that's the backbone of a rural New Brunswick community's local economy is facing a closure that will impact hundreds of workers.
Nackawic, a rural New Brunswick community, is bracing for the temporary closure of its local pulp mill, which will leave hundreds of workers jobless. AV Group NB Inc., a subsidiary of the India-based Aditya Birla Group, announced on Thursday that it will idle its AV Nackawic facility towards the end of October. The decision, attributed to "prevailing market conditions" and other challenges, affects about 350 employees.
Mike Legere, director of government relations and communications at AV Group, emphasized that the company's move was not a "flippant decision" and highlighted the surplus of dissolving-grade pulp in the market, which hinders price realization and maintains prices below production costs.
Nackawic-Millville Mayor Tim Fox noted that the news was not surprising, as there had been a slowdown in wood deliveries to the mill in August. He added that the situation is unsettling for both the community and the province's forestry industry, which is currently experiencing uncertainty. Unifor, the union representing 228 of the affected workers, expressed disappointment with the lack of proactive measures to address the issue.
Jennifer Murray, Unifor's Atlantic regional director, stressed that there is no room for such a shutdown, warning that restarting the mill once more is improbable.
Natural Resources Minister John Herron expressed disappointment and sadness over the news, calling it a "difficult day for New Brunswick." The province's premier, Susan Holt, stated that her government is working with community leaders and Unifor to provide necessary support to those impacted. The government remains committed to aiding those affected by the temporary closure of the pulp mill.
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