Irving Paper to Shut Down Half of Operations, Citing High Electricity Costs

Irving Paper to Shut Down Half of Operations, Citing High Electricity Costs

Irving Paper Ltd. announced on Monday that it will be shutting down half of its operations, resulting in the loss of 140 jobs. The company cited "uncompetitive" industrial electricity rates in New Brunswick as the reason for the decision.

Irving Paper is a manufacturer of paper used for magazines, catalogues, and newsprint. The company exports more than 95% of its annual production to 65 countries.

Mark Mosher, vice-president of Irving Pulp & Paper, said the decision to downsize was difficult but necessary to ensure the company's long-term sustainability. He said the company has been working with the provincial government to find a solution but concluded there is no way to maintain full operation of both of its paper machines.

New Brunswick Natural Resources Minister John Herron said his department has been working with J.D. Irving Ltd., the parent company of Irving Paper, to develop a "financially sustainable" solution that preserves jobs for New Brunswickers. He said the government will continue to work with the company to find a solution.

NB Power, the province's electric utility, said its rates are based on the cost of providing electricity to residential and industrial customers. The company said its rate for large industrial customers such as Irving is 9.7 cents per kilowatt hour, which is competitive in relation to other provinces.

Green Party Leader David Coon said he hopes the layoffs aren't a case of "job blackmail." He said industrial electricity rates in New Brunswick are competitive with most of our surrounding jurisdictions, and that households and small business ratepayers subsidize industrial power rates in the province.