If you live in New Brunswick you know how important the forestry sector is to the local economy. Now the provincial government wants to buy over 106,000 acres of timberland from AV Group. The company listed the land for sale just days before shutting down its Nackawic mill. According to a report from CBC News the province submitted a bid to keep the land tied to the local forestry sector.

Details of the Land Sale

Boston based real estate broker LandVest is handling the listing. The property sits between the Canada and United States border and Highway 3. It holds nearly 4.5 million cubic metres of standing timber. Bids are due on December 17.

Natural Resources Minister John Herron cannot disclose the exact amount of the provincial bid because of a non disclosure agreement. He told reporters it is vital to keep the land associated with the wood basket to ensure sufficient fibre for the Nackawic region.

Union Leaders Fear Permanent Closure

AV Group announced in September it will idle the Nackawic mill at the end of October. This decision puts roughly 350 people out of work. Grant Charlton serves as president of Unifor Local 219. He represents the mill employees and says the land sale is a bad sign.

“Well to us it just signals that this company certainly has no intention of continuing to operate in the future,” Charlton said. “They call it a temporary idling but if you are selling off your assets like woodland that doesn’t really signal to us that it is temporary.”

Employees are currently cleaning and shutting down the facility. Layoffs begin next week. Charlton believes the parent company Aditya Birla Group is walking away from the operation.

Winter Weather Threatens the Mill

Politicians and workers worry about what happens when temperatures drop. Progressive Conservative MLA Richard Ames wants the province to heat the mill to prevent permanent damage. Herron noted the province does not own the facility and cannot make that decision.

However the government is pressuring AV Group to maintain the site. If the mill goes cold it triggers an expensive environmental impact assessment. Herron says this serves as leverage to force the company to heat the plant. He also pointed out the mill suffers from a severe lack of investment. He claims to have photos showing equipment held together with duct tape.

The province is currently analyzing the state of both the Nackawic mill and AV Group Atholville mill. Officials expect more information by the end of the year.

Frequently Asked Questions

Why is the New Brunswick government bidding on this land?

The province wants to keep the 106,000 acres of timberland connected to the local forestry sector to ensure a steady supply of wood fibre for the Nackawic region.

How many jobs are affected by the Nackawic mill closure?

The idling of the mill puts approximately 350 employees out of work.

When is the deadline to bid on the AV Group timberland?

Interested buyers must submit their bids by December 17.

What happens if the mill loses heat this winter?

Allowing the mill to freeze triggers a costly environmental impact assessment. The province is using this rule to pressure the company into heating the facility.