High Energy Costs Force Irving Paper to Slash Operations by 50%
Irving Paper announced Monday it has permanently shuttered 50% of its operations in Saint John, New Brunswick, resulting in immediate layoffs for 140 employees.
The company attributed the decision to “uncompetitive industrial electricity rates” in New Brunswick that have made it increasingly difficult to remain viable in the international market. Mark Mosher, Irving Paper’s vice president, described the move as “difficult but necessary” to ensure the company’s long-term sustainability.
“Our employees are not just colleagues, they’re family,” Mosher said. “Seeing a facility like ours partially shut down due to uncompetitive electricity rates marks a sad day for many.”
This permanent reduction follows a temporary one-week partial shutdown announced in December 2024, which was also in response to record-high electricity costs in the province.
The company plans to continue discussions with the provincial government to develop a strategy that would allow the remaining 50% of the mill to continue operating, particularly with an additional 10% electricity rate increase looming on April 1, 2025.
Irving Paper, which describes itself as a “world-class manufacturer of graphic paper,” produces materials used in magazines, catalogs, newspapers, and advertising flyers. The company exports approximately 400,000 tonnes of paper annually—over 95% of its manufacturing output—to 65 countries worldwide.
Mosher emphasized that despite significant investments in energy efficiency that have positioned the facility as “top quartile in virtually every category,” the company has been unable to find a viable solution with the New Brunswick government to maintain full operations of both paper machines.
The company is now working with government agencies to assist affected employees through this transition as it attempts to preserve the remaining half of its operations.
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