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Irving Paper says it has permanently shut down 50 per cent of its operations due to New Brunswick’s “uncompetitive industrial electricity rates.”
The company, located in Saint John, N.B., said 140 employees were impacted on Monday, and the layoffs are effective immediately.Vice-president Mark Mosher said the company is working closely with government agencies to assist affected employees with the transition.“Our employees are not just colleagues, they’re family,” Mosher said. “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.
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Mosher said it has become difficult for the company to “shoulder the impact” of soaring electricity costs and remain competitive in an international market.He added that despite working with the government of New Brunswick “towards a solution,” there was 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,” Mosher said.
The company had already announced in early December 2024 that it was shutting down 50 per cent of its operations in Saint John, which would last a week, and that the move was in response to the province’s record-high industrial electricity rates.“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,” Mosher said. “Seeing a facility like ours partially shut down due to uncompetitive electricity rates marks a sad day for many.”The company said Irving Paper is a world-class manufacturer of graphic paper for use in magazines, catalogues, newspapers and advertising flyers. Over 95 per cent of Irving Paper’s annual manufacturing output, around 400,000 tonnes of paper, is exported to 65 countries.
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