Irving Paper again reduces operations temporarily
Saint John, NB -- Irving Paper will once again shut down 50 per cent of its operations beginning Monday December 2nd in response to NB Power’s record high industrial electricity rates, and remain down for at least a week.
“NB Power’s continued delays at the Point Lepreau generating station have resulted in electricity rates being over one hundred percent higher than historic levels,” said Mark Mosher, Vice President of Pulp & Paper, J.D. Irving, Limited. “No business can absorb price increases of that level without negative impacts. Irving Paper has shut down or reduced its operations over 30 days so far in 2024, with more expected.”
Irving Paper manufactures 400,000 tonnes of paper annually, over 95 per cent of which is exported to 65 countries. Current electricity rates have a massive impact on Irving Paper’s ability to compete.
Due to the nature of the pulping process, electricity usage is intensive and unavoidable. Irving Paper has historically been the provincial utility’s biggest customer with annual costs in the range of $60 Million. Projections see that increase to well over $80 Million in 2024 and $100 Million in 2025, with significant downtime built in to avoid a much higher bill.
“We have invested significantly into alternate energy sources and making our facilities as energy efficient as possible in an effort to offset the province’s high electricity costs,” Mosher added. “Without clear policy to address these bigger structural competitive issues, NB’s industrial base will continue to contract.”
Located at 435 Bayside Drive in Saint John, Irving Paper is a world class manufacturer of graphic paper for use in magazines, catalogs, newspapers and advertising flyers. It directly employs 310 people and supports over 300 suppliers in New Brunswick, with a total of $144 Million in purchases in 40 communities in 2023. It is also a major consumer of wood chips from New Brunswick sawmills which are supplied, in part, by local private woodlots and marketing boards.
