Region Archives: Canada East

The CEO of the pulp and paper mill in Kapuskasing, Ontario, says he was not surprised, but is disappointed by US tariffs that are expected to have a big impact on Canada’s forestry sector. “The pulp and paper business is in a very difficult place in Ontario,” said Terry Skiffington, the CEO of Kap Paper. In January, the century-old mill, historically known as Spruce Falls, received a $10-million loan from the provincial government to help the business diversify… by building a biomass plant which would produce energy by burning wood that can’t be used for paper production. …”We can move products into Europe, into Asia and into India relatively competitively, which is odd intuitively when we’re sitting in the centre of Canada,” he said. …”I’m feeling like I’ve done a few rounds in the ring with Mike Tyson, but our intention is to remain on that course,” Skiffington said.

Like other New Brunswick forestry towns, the rural community of Kedgwick is on edge. The economy of the municipality relies on two major sawmills, J.D. Irving Ltd. and Groupe Savoie, and several smaller forest operations. …About 24,000 New Brunswickers work in the forestry sector, and 80 per cent of the industry’s output — softwood and hardwood lumber, pulp and paper, shingles, fibre and strand board — goes to the United States. …The market share for Canadian wood in the U.S. has dropped from 34 per cent in 2000 to 23 per cent last year because of multiple factors, including the duties, said Dustin Jalbert, a wood products economist with the U.S. price forecasting firm Fastmarkets. But there still isn’t enough American supply to completely replace Canadian wood, even at higher prices, and the U.S. industry couldn’t ramp up to meet that demand for three to five years, he added.

New Brunswick’s natural resources minister says he’s working closely with Irving Paper to ensure a durable solution is in place to save jobs at its Saint John mill. John Herron said the need to protect the plant on Bayside Drive on Saint John’s east side was urgent, given the number of high-paying jobs – 143 – and economic activity at stake. …“It’s certainly not lost on me that the plant is very important to the regional economy and the provincial economy. …J.D. Irving, Limited, the mill’s parent company, announced early last week that it would shut down one of its two machines at the old plant because it said NB Power’s high industrial rate for electricity was making it uncompetitive in the global paper industry. …The machine that’s being shut down is the most energy intensive of the two.

NEW BRUNSWICK — J.D. Irving Ltd.’s claim that “uncompetitive” electricity prices charged by N.B. Power is exclusively responsible for forcing it to close a production line at its east side Saint John paper mill has pushed the provincial utility and its rates into the spotlight. And N.B. Power is not taking the criticism quietly. …Dominique Couture said, “N.B. Power large industrial rates are lower than Nova Scotia, P.E.I., HydroOne (in Ontario), Alberta and are on par with Saskatchewan.” N.B. Power did raise industrial and residential rates 13% in the past year and has plans to raise them more than 9% again this year, beginning on April 1. Still N.B. Power disputes that has made electricity pricing uncompetitive in New Brunswick. …Quebec and British Columbia have substantial hydroelectric production and offer industrial power rates to mills between 10 and 28 per cent below N.B. Power’s subsidized rate.

Related coverage by the Telegraph-Journal Editorial Board: Power rates are a real problem. An Irving subsidy isn’t the solution

ESPANOLA, Ontario — Resource towns dot the Canadian landscape; they blossomed during the boom times of the last century. Lumber mills, plywood factories, and plants producing rolls of newsprint – with their signature aromatic plumes of smoke – defined many places on the Highway 11 or 17 corridor. …In the 21st century, no municipality relying on one industry can think itself safe from global change or distant corporate headquarters driven by the bottom line. Espanola, located about 71 km west of Sudbury, is another northeastern Ontario community where a mill closing sent ripples through the local economy. On Sept. 6, 2023, Domtar announced it would “indefinitely idle” its pulp and paper operations. …In a town of 3,986 (as of 2021), about 450 workers were affected almost overnight.. …”We are launching a process to establish an economic diversification strategy for the region. …It is only a matter of time before something establishes itself there.”

Unifor says it won’t stop fighting for unionized paper mill workers receiving layoff notices this week from J.D. Irving Ltd. Jennifer Murray, Atlantic regional director of Unifor, said 100 of the 140 people laid off from Irving’s Saint John paper mill workforce are Unifor members. …Workers of these specialized jobs were notified Monday they would be laid off officially within 45 days, said Murray. …Murray said JDI was in discussion with Unifor regarding rising energy costs. Unifor had several meetings with the provincial government to find strategies to protect these jobs. …So far, JDI has said there may be opportunities for some of these workers to be put in positions elsewhere within the company. …Unifor had a meeting with Natural Resources Minister John Herron Tuesday on strategies to bolster the forestry industry in the province.

It was only a matter of time before the folly of NB Power’s mismanagement would hit New Brunswickers where it hurts the most: their jobs. Irving Paper announced layoffs for about half its employees, 140 people, on Monday. The company was frank about the reason: uncompetitive power rates. There is no reason to think this is some kind of corporate bluster. New Brunswickers have seen for themselves what’s happened to their power bills. …Since the turn of the century, it has been clear NB Power was on a very bad financial path. That’s principally the fault of the utility executives and the board. …As NB Power tries to squeeze the lemon even tighter, it will drive more companies to either downsize, leave the province, or shut down altogether. J.D. Irving, Limited, the parent company of Irving Paper, understands this well.

J.D. Irving announced that it will permanently reduce operations at its Saint John paper plant, laying off 140 workers. Workers at Irving Paper were informed Monday morning that the layoffs will take effect immediately, according to a release from the company, which listed the plant’s total workforce at 310 employees. …”As New Brunswick manufacturers face more and more significant headwinds, it is becoming increasingly difficult to shoulder the impact of soaring electricity costs and remain competitive in an international market,” said Irving Pulp and Paper VP Mark Mosher in a statement. The move comes after J.D. Irving advocated last fall at the Electricity and Utilities Board hearing against changes to the way N.B. Power calculates charges. At the hearing, N.B. Power argued the move was a self-serving attempt by JDI to escape expenses the company wants others to pay for.

In related coverage:

• CBC News: Residents urged not to despair after Irving cuts Saint John workforce
• Telegraph-Journal: Irving mill lays off nearly half its workers, blames NB Power rates