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 employees 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.”
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
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