Irving Paper shuts down 50% of N.B. operations due to electricity rates

Irving Paper Closure: A Hard Hit on Employees and the Economy

The Sudden Shutdown

In a disheartening turn of events, Irving Paper recently announced the permanent shutdown of 50% of its operations in Saint John, New Brunswick. This abrupt decision has left 140 employees without jobs, effective immediately. Vice-President Mark Mosher expressed the gravity of the situation, stating that the affected employees are not just colleagues but family. This sentiment underscores the emotional weight of the decision, which, however difficult, was deemed necessary to ensure the company’s long-term sustainability amidst soaring electricity costs.

Impact on Employees

The layoffs have sent shockwaves through the community, affecting not just the individuals but their families and the local economy. The emotional toll is significant, with Mosher acknowledging the difficulty of the decision. Irving Paper is providing support to the affected employees through government agencies, easing their transition. This shutdown is a stark reminder of the human cost of economic challenges, highlighting the personal stories and struggles behind the statistics.

The Struggle with Electricity Costs

At the heart of the shutdown is the issue of uncompetitive industrial electricity rates in New Brunswick. Despite Irving Paper’s reputation as a world-class facility, known for its energy efficiency, the company has found it increasingly difficult to shoulder the rising costs. Mosher emphasized that these rates have hindered their ability to compete in the international market, leaving no viable alternative but to reduce operations and focus on sustainability.

Global Implications

Irving Paper’s global reach is substantial, exporting 400,000 tonnes of paper annually to 65 countries. The closure of half their operations not only affects local jobs but also has ripple effects on a global scale. This shutdown illuminates the broader economic challenges faced by industries reliant on competitive energy costs, raising concerns about the future of manufacturing in regions with high electricity rates.

Looking to the Future

In the face of an impending 10% electricity rate increase by April 2025, Irving Paper is working closely with the provincial government to devise a plan for the remaining operations. Mosher expressed hope that continued collaboration might mitigate further shutdowns, though the path ahead remains uncertain. This phase is critical, as it will determine the fate of the facility and its workforce beyond the immediate closure.

A Call to Action

The situation at Irving Paper serves as a clarion call for policy change and support for energy-intensive industries. The shutdown is more than a business decision; it’s a testament to the broader need for competitive energy solutions to sustain jobs and economic growth. As Irving Paper navigates this challenging landscape, the focus must remain on finding sustainable solutions that balance economic and environmental goals, ensuring a resilient future for industries and communities alike.