The Nackawic pulp mill shuts down at the end of October, and the New Brunswick government expects the facility to remain closed permanently. The closure leaves approximately 350 employees out of work. You can see the devastating impact this shutdown brings to the local community. According to a recent report from CBC News, Natural Resources Minister John Herron believes the mill owner is walking away for good.

A History of Neglect

The mill belongs to AV Group, a subsidiary of the $67 billion India based Aditya Birla Group. Despite the parent company having a massive global footprint, the Nackawic facility suffers from severe neglect. Herron toured the mill last year and noted visible deferred maintenance.

“You could see that the mill did not have any high level of investment,” Herron said.

Grant Charlton, president of Unifor Local 219, echoed these concerns. He noted the company spent the last five years fixing only immediate mechanical problems rather than investing in proactive upgrades. Charlton believes proper investment and diversified income streams make the mill a profitable business.

No Bailout on the Horizon

You will not see taxpayer dollars bailing out the company this time. Herron confirmed the company has not asked for financial help.

“The most stark illustration of this is that the company has not asked for any money at all associated with this,” Herron said. “So my view is that the Birla Group is tapping out.”

The province previously offered a $10 million investment for upgrades, but AV Group refused to guarantee the mill would continue operating. This refusal signaled the company lacks a long term commitment. The company previously received heavy public funding. After taking over in 2005, AV Group secured $100 million in provincial loans and guarantees, plus a $50 million federal grant for energy and environmental upgrades.

Looking Ahead

Premier Susan Holt expects AV Group to uphold its obligations to the people of Nackawic. However, her government focuses primarily on supporting the laid off workers rather than saving the facility.

The Department of Natural Resources established a committee to prepare for this exact scenario. Herron wants a full analysis of the investment required for a new buyer to take over the mill. The province needs this data before winter weather damages the idle equipment.

The government will conduct a similar analysis for the Atholville mill owned by AV Group. While Atholville faces similar market challenges, it remains in better physical condition than the Nackawic site.

Frequently Asked Questions

Why is the Nackawic mill closing?

The owner, AV Group, is shutting down the mill at the end of October due to market challenges and a lack of long term investment in the facility. The provincial government expects the closure to become permanent.

How many jobs are affected by the Nackawic mill closure?

The shutdown leaves approximately 350 employees out of work.

Will the government bail out the Nackawic mill?

No. The company has not requested financial assistance, and the provincial government focuses its efforts on supporting the laid off workers rather than funding the current operator.