The future of the Nackawic pulp mill hangs in the balance. Owner AV Group is evaluating all strategic options for the facility. This uncertainty brings major implications for the local community and the broader New Brunswick economy, including operations right here at the Port of Saint John. According to a recent report by CBC News, Natural Resources Minister John Herron confirmed the company is reviewing its operations.

The Ripple Effect on Saint John

You will feel the impact of a potential closure well beyond the borders of Nackawic. Products from the two AV Group mills in New Brunswick account for 70 percent of exports leaving the Port of Saint John by shipping container. Unifor, the union representing 270 workers at the Nackawic mill, highlighted this massive export footprint. A disruption in Nackawic directly threatens shipping volumes and related jobs in Saint John.

A Community on Edge

The mill serves as the economic engine for Nackawic Millville. It represents nearly half of the municipality’s tax base. Deputy Mayor Greg MacFarlane expressed deep concern over the situation. “It’s a huge impact provincially, regionally and obviously, for a town like ours to lose that type of employer would be devastating,” MacFarlane told CBC News. Residents share this anxiety. Local resident Leo Cook noted that many workers are already looking for alternative employment. “We heard it’s not going good,” Cook said. “It would be an awful thing if it closed down.”

Wood Buying Freeze Continues

The warning signs started in August when AV Group stopped buying wood for the Nackawic mill. The company initially cited a need to manage cash flow and balance inventory. However, the freeze continues today. Unifor Atlantic regional director Jennifer Murray confirmed the mill is still processing wood and no layoffs have occurred yet. Still, the union remains in the dark about the prolonged freeze. “The company’s been pretty tight-lipped on that,” Murray said. The company’s other mill in Atholville continues to purchase wood normally. Furthermore, the Nackawic mill does not export to the United States, meaning cross border tariffs do not play a role in the current financial strain.

Frequently Asked Questions

Why is the Nackawic pulp mill evaluating its options?

AV Group stopped buying wood in August to manage cash flow and inventory. The company is now reviewing all strategic options for the facility’s future.

How does this affect Saint John?

The AV Group mills in New Brunswick produce 70 percent of the container exports that leave the Port of Saint John. A shutdown would severely impact port activity.

Are workers currently laid off?

No. The mill continues to process existing wood inventory and no layoffs have taken place yet.

Is the Atholville mill affected?

No. AV Group’s mill in Atholville continues to buy wood and operate normally.