Irving Paper cuts 50% of N.B. operations, lays off 140 workers

Irving Paper has announced a permanent closure of 50% of its operations at its Saint John mill, resulting in the immediate layoff of 140 employees. The company attributes this drastic move to New Brunswick's uncompetitive industrial electricity rates, which have made it increasingly difficult to operate sustainably in the international market. Vice-president Mark Mosher expressed that despite attempts to collaborate with the provincial government for solutions, no viable alternatives exist to maintain full operations. The company's electricity costs have surged dramatically, projected to reach $100 million this year, significantly higher than past expenses. Irving Paper is committed to working with local authorities over the next weeks to formulate a plan for the remaining operations before an anticipated further electricity rate hike. This situation highlights the broader challenges faced by New Brunswick's manufacturing sector amid rising operational costs.