Region Archives: Canada East

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

Corner Brook Mayor Jim Parsons says Newfoundland and Labrador Hydro isn’t providing a handout by buying Corner Brook Pulp and Paper’s electricity from Deer Lake Power. Hydro is buying power at 27.5 cents per kilowatt hour — nearly double the average domestic electricity rate — and it doesn’t need it to supply customers. ..But Parsons said they’re a very stable backup when they have problems elsewhere,” Parsons said. “Yes the rate is high, but it’s what you would pay for this kind of thing. So I think that yes, it is important that our government supports the mill in various ways, but I think it’s a mischaracterization to say this is a handout.” …”The paper industry is changing, and the mill needs change to remain current. And this is one of the ways in which they can remain current,” Goulding said. …Kruger employs 425 people with a deep trickle-down effect.

CORNER BROOK — The provincial government, through its Crown-owned utility company, is helping prop up the struggling newsprint mill in Newfoundland and Labrador by buying unnecessary electricity from Corner Brook Pulp and Paper at an inflated rate. It’s power that Newfoundland and Labrador Hydro does not need to supply customers, according to the utility company. …N.L. Hydro has confirmed that it is buying electricity from Deer Lake Power, which energizes the paper-making machines at the Corner Brook mill, for 27.5 cents per kilowatt hour. That’s nearly twice the average domestic electricity rate — 15.3 cents, when the basic customer charge is included — on the island of Newfoundland. …The power purchase agreement is just the latest attempt to save the Corner Brook mill by both Liberal and Progressive Conservative governments. …Kruger has described Corner Brook Pulp and Paper as a “vital force” in western Newfoundland’s economy.

TROIS-RIVIÈRES, Quebec — Kruger announced a $6.5-million investment to implement an innovation project aimed at diversifying production at its Wayagamack Mill in Trois-Rivières. The initiative will enable the production of innovative label paper grades, reinforcing the Wayagamack Mill’s leadership in Québec and North America. …The project was unveiled in the presence of Jean Boulet, Québec Minister of Labour and Minister Responsible for the Mauricie Region, the Abitibi-Témiscamingue Region and the Nord-du-Québec Region… and Sylvain Bricault, General Manager of the Kruger Wayagamack Mill. …The initiative was made possible by a $2.5 million funding from the Government of Québec under the Programme Innovation Bois of the ministère des Ressources naturelles et des Forêts.

NEW BRUNSWICK — Three timber firms will have a chance to convince the New Brunswick Court of Appeal that a lower-court decision should be struck in the Wolastoqey Nation’s big Aboriginal title case. On Friday, Justice Ivan Robichaud granted J.D. Irving, Limited, Acadian Timber and H.J. Crabbe and Sons leave to appeal. They all appeared last month seeking permission from the appeal court, New Brunswick’s highest, to re-examine Justice Kathryn Gregory’s decision on motions they had filed to remove them from the massive lawsuit. As is customary in such decisions, Robichaud did not offer any reasons for granting their request. The companies didn’t like Gregory’s lengthy ruling in the Court of King’s Bench last November because, although the judge agreed that the industrial defendants and everyday private property owners must be removed from the Wolastoqey lawsuit, their land was still part of the title claim.

QUEBEC — Steeve St-Gelais listened nervously on Monday as U.S. President Donald Trump listed industries he might target for tariffs. …“Will he wake up tomorrow morning and want to say, ‘Well, we’re going to do something specifically for wood’,” he wondered. St-Gelais is the president of Boisaco, a forest products company based on Quebec’s north coast that employs about 600 people and relies on the U.S. market for about 10 per cent of its business. The company’s $200 million in annual revenue isn’t enough to dominate the Canadian landscape, but it’s an economic superpower in the Sacré-Cœur community of just 10,400 people. The reason St-Gelais is so nervous is that since Trump took office four weeks ago, he’s seen a drop of about 25% in orders from Canada and the United States. His customers are buying just enough to cover their short-term needs, waiting to see if the president will take on the industry. 

QUEBEC — Premier François Legault has emerged from meetings with high-ranking Donald Trump officials convinced more than ever that the American-Canadian trade relationship will have to change, and that means Quebecers need to get used to the idea that their economy will never be the same. Pledging to nevertheless protect Quebec workers despite the challenges ahead, Legault said the two days of meetings he and the other Canadian premiers held in Washington convinced him the Americans are looking for long-term reassurances they can have access to Canadian minerals and resources. And Quebec companies, including those producing aluminum, steel and softwood lumber, are going to have to make concessions and diversify to develop new markets to compete. …“There were some very frank moments across the table,” added British Columbia Premier David Eby. “They urged us to take the president at his word.” …Legault said he’s “prepared to make compromises on aeronautics, on forestry.”

Bill MacPherson

THUNDER BAY, Ontario — Thunder Bay Pulp and Paper , a northern bleached softwood kraft and northern bleached hardwood kraft pulp, paper, newsprint and directory producer, announced the appointment of K. William (Bill) MacPherson as Chief Executive Officer, effective February 10, 2025. …MacPherson brings more than 35 years of pulp and paper industry leadership experience to Thunder Bay, most recently serving as VP of Paperboard Manufacturing for Graphic Packaging International. Prior to Graphic, MacPherson was Managing Director at Mercer International, Canada, and Mill Manager for Domtar in Kingsport, Tennessee. …“As we begin our second century of operations, I look forward to working with Bill as we strengthen our operations and build our reputation in this new era as a steadfast driver of the local economy,” said Kent Ramsay, Thunder Bay President.

THUNDER BAY, Ontario — The Anishnawbe Business Professional Association (ABPA) is “deeply concerned” about the proposed U.S. tariffs on Canadian exports and their potential to harm to the economic stability of Indigenous businesses in the oil and gas, forestry, mining, and electricity sectors. ABPA president Jason Rasevych, a member of Ginoogaming First Nation, said the business organization is urging the federal and provincial governments to work with treaty partners to ensure that Indigenous leaders are a part of the discussion to mitigate these impacts and support the resilience and prosperity of all Canadians. “Canada needs more than reactive tariffs or bailouts. We need a bold, forward-thinking strategy that makes us the obvious choice for global business,” Rasevych told The Chronicle-Journal. “That means reducing internal trade barriers and championing the strengths that set us apart.”

Ian Dunn

Cross-border quarrels between Canada and the U.S. over goods and supply are nothing new, having its roots in the pre-Confederation days of the Jay Treaty of 1794, said Ian Dunn. The president-CEO of the 51-member Ontario Forest Industries Association (OFIA) calls the ongoing fight over exported Canadian lumber to the U.S. “probably the largest global trade dispute” since the close of the Second World War. “Tariffs are not a new thing for the lumber producers and our membership,” said Dunn. …About 97% of Ontario’s forest products exports annually – amounting to $7.7 billion of trade – heads to the U.S. in the form of lumber, pulp, newsprint and structural panels. Slap on a 25 per cent tariff and that’s close to $2 billion coming out of Ontario. …Should the combination of increased duties and Trump tariffs remain in place for an extended period of time, Ontario’s forest industry would be a shadow of its former self.

LIVERPOOL, Nova Scotia — Domtar is nearing the final stages of its feasibility study for a potential new pulp mill in Liverpool, Nova Scotia. The company expects to make a public announcement in the first quarter of 2025, ahead of a court hearing in March. The decision to proceed with the project is contingent upon meeting a 14% return on investment over 20 years, as outlined in the May 2024 court-approved settlement agreement with the province. …Natural Resources Minister Tory Rushton emphasized the potential economic impact of the project. The project would also provide a market for low-quality wood and chips. …Domtar’s subsidiary company, Paper Excellence, entered into a settlement with the provincial government following the closure of the Northern Pulp mill in 2020. As part of the settlement, which resolved a $450-million lawsuit filed by Paper Excellence against the government over closure, Domtar agreed to explore the viability of opening a new mill in Liverpool.

NOVA SCOTIA — Forest products that are grown, harvested, crafted or manufactured in Nova Scotia will soon be marketed through the Nova Scotia Loyal program. The program, which launched last July, gives Nova Scotians more points on their existing loyalty rewards program for buying local goods. The Nova Scotia government says forest product producers can enrol in the program and will be automatically approved. “We want to make buying local easy and clear when it comes to our forest products,” said Minister of Natural Resources Tory Rushton. Products under the Nova Scotia Loyal program are labelled to help consumers easily identify them. …“Nova Scotia Loyal is a great opportunity to showcase these wonderful products and help people support our businesses across the province,” said Todd Burgess, executive director with Forest Nova Scotia.

NEW BRUNSWICK — The Wolastoqey Nation’s title claim for more than half of New Brunswick was in court again Friday, this time because three timber firms are upset about a lower court ruling that did not explicitly state their land won’t be taken from them someday. J.D. Irving, H.J. Crabbe and Sons, and Acadian Timber each presented separate motions before the Court of Appeal of New Brunswick , asking it to revisit a decision by Justice Kathryn Gregory. Although Gregory agreed that the industrial defendants must be removed from the lawsuit, their land is still part of the title claim. She also wrote in her judgment that in the future it’s possible the Crown could expropriate their property and give it to First Nations communities. …”This is the most important case of our lifetime,” Hugh Cameron, lawyer for Acadian Timber, told Justice Ivan Robichaud. …Robichaud reserved his decision on the leave to appeal.

Ian Dunn

THUNDER BAY — Anxiety about tariffs still looms over the forest industry, despite the Canada-U.S. trade war being delayed 30 days. “There’s a great deal of concern. The 30-day reprieve is welcome, but effectively, it means nothing until it’s been resolved,” said Ian Dunn, chief executive officer of Ontario Forest Industries Association. …“Tariffs have – and duties are already having an impact. Sawmills in the area have had a reduction of shifts. There have been layoffs. In other regions of the province, there have been closures in the sawmilling industry. There’s also been the idling of very important anchor mills in Terrace Bay and Espanola,” Dunn said. “I think in a lot of respects the damage has already been done. If you’re a multinational company looking to invest, you’re going to sense a lot of uncertainty in the marketplace right now. You would lose a lot of confidence in the Canadian-U.S. relationship,” he added.

Related coverage in CBC: Ontario’s forestry sector can’t withstand more tariffs, says industry association

Representatives for two large exporters in Nova Scotia say they’re ready for U.S. import tariffs, even though they were delayed on Monday just before they were to be implemented. Mike Hartery, co-manager of the Port Hawkesbury Paper mill, said the company had been waiting Monday afternoon to find out if the promised 25 per cent import tariff would kick in on Tuesday. …Hartery said tariffs would drive up paper prices for American customers and could force those buyers to scale back their orders from Canada. He said the mill is scrutinizing its costs, which could mean buying less wood from suppliers in Nova Scotia forests. …The company will press ahead with a $400-million investment in a stand-alone wind power project to supply the mill with electricity, but that does not mean the company expects tariffs, if implemented, to be temporary.

Additional coverage in CTV by Emma Convey: Atlantic Canadian forestry sector concerned with impact of tariffs

Audra Denny

OTTAWA, Ontario — The Wood Manufacturing Council announced the appointment of Audra Denny to the role of president. Denny, who most recently served as executive director of the Architectural Woodwork Manufacturers Association of Canada, will be responsible for the effective and efficient management of the WMC, ensuring the execution of the board’s strategic direction and policies to achieve desired outcomes. …Denny succeeds Lynn MacKinlay, who returned to Georgian College in Barrie, Ontario, as the coordinator of Carpentry and Renovation Techniques, and Cabinetmaking Techniques. The WMC is a non-profit corporation that works to bring together stakeholders in advanced wood processing to help collectively address human resource and skills development issues in the sector.

While a 30-day postponement of U.S. tariffs on Canadian goods has paused an escalating trade war, there is still concern in Northwestern Ontario. Thunder Bay-Atikokan MPP Kevin Holland said the proposed 25 per cent tariffs could have a devastating effect on the Canadian forestry industry. “I’m concerned,” Holland said. “We’re at almost 15 per cent tariffs on softwood lumber and by example, there’s talk that in the Quarter Three of 2025, the U.S. is looking at doubling that. Then put another 25 per cent on and we’re going to have 55 per cent tariffs on softwood lumber.” …“They need Canadian lumber and we need to make sure that we’re communicating the importance of the partnership [and its value] for both countries.” “A 25 per cent across-the-board tariff will result in significant economic effects,” Economist Di Matteo said. “In Northern Ontario, the resource sector will particularly be affected — forestry and mining.”