Governments scramble as Nackawic mill set to close Nov. 4
The owners of AV Nackawic have explained why they decided to close the mill, but the union isn’t buying it.
The mill produces 190 kilotonnes of dissolving-grade pulp (cellulose) per year (KTPA). The product is used to manufacture viscose. The mill will shut its doors on Nov. 4, putting approximately 350 people out of work.
In its Sept.17 news release, AV Group NB officials said the closure of its Western New Brunswick operation is due to “continuing challenges presented by prevailing market conditions and broader macroeconomic factors.”
Jennifer Murray, Unifor Local 219 Atlantic Regional Director, isn’t buying that excuse. She said the mill lacks investment. Over time, the mill required modernization and reinvestment of profits, but she said the investments didn’t occur at the scale needed.
“I believe that there’s a need for investment in this mill. Over time, there was a need to modernize and put profits back into it. I think that we’re now in a position where it’s very costly to run the mill. Things are kind of breaking down and so there’s a need for investment in this mill,” said Murray.
Nackawic-Millville Mayor Tim Fox said that, in his discussion with the AV Group representatives, it was clear that the market is in rough shape.
He noted that costs are high and tariffs are hurting the customers, and they can’t meet the investments needed to keep and sustain the mill long-term.
“We know that there is an oversupply of dissolving pulp on the world market currently, we know that cost of operating any business is very challenging right now, and we also know that while the mill is not impacted directly by tariffs, the products that are made from their pulp are,” said Fox.
“In order to keep a mill like this sustainable for the long-term, it requires significant investment plans and with the challenges in the forest products industry today, that type and size of investment is difficult to justify to shareholders.”
AV Group NB said it will continue to monitor market and business conditions and review potential paths for the facility.
Their Atholville mill will not be affected by the closure.
Employees future
The closure will result in over 300 immediate layoffs.
Although the Atholville operation will continue to run, that doesn’t mean the Nackawic mill workers can transfer.
Murray said the union hasn’t had direct conversations with the employers about transfers. However, she believes transfers are unlikely.
“I would say that it wouldn’t just be as simple as that [transferring], simply because I believe they already have the workers that they need at the Atholville mill. Unless they’re planning to expand, which I’ve not heard,” said Murray.
Murray said Unifor Local 219 has advocated for the Nackawic mill for years, and their efforts have increased in recent months as conditions have worsened.
The union’s main focus now is to push for investments to protect workers and the work done at the mill. They have been meeting with provincial and federal governments about potential investments.
Government reaction
New Brunswick Premier Susan Holt shared on social media that she and her team are putting together a support plan to help those affected.
“My team and I have been in regular touch with community leaders and with Unifor. We are listening and working with those directly affected to understand what this decision means for them and what is needed,” said Holt.
“Our government is putting a support plan in place. Teams across government are working together to make sure people have access to the support they need, and we will share more in the coming days. Your government has your back.”
Natural Resources Minister John Herron also shared he is working closely with other departments to find ways to help.
“Staff in Natural Resources, Post-Secondary Education, Training and Labour, Opportunities NB, and others have been working on a response plan to help support those who need it most right now. Further details will be shared in the coming days,” said Herron.
The impact of the closure will be felt well beyond the community of Nackawic-Millville.
Woodstock Mayor Jeff Wright said he hopes for a quick resolution to keep the mill open.
“It’s an absolute shame and a huge blow to the region and more so the town of Nackawic. I feel bad for the employees and families affected and hope something can be worked out to keep the mill open or reopened very soon,” said Wright.
Tobique-Mactaquac MP Richard Bragdon, in a social media post, said that he, MLA Richard Ames, Mayor Fox, AV Nackawic, and governments of all levels are working to find ways to support the mill workers and the Nackawic-Millville community.
“While this is a very difficult and trying season, we are all committed to working together to find a way forward, through this challenge and beyond it. As this community has done in the past when faced with similar circumstances, we will get through this together,” said Bragdon.
Global markets impacting local community
One of the many things produced at the mill is rayon; a semi-synthetic fibre made from natural plant cellulose, like wood pulp. Right now, the global textile industry is struggling because of low consumer spending and higher energy and raw material costs.
In a Textile Resources article, apparel revenue in China fell 3 per cent in early 2026. A Textile Today article showed that manufacturers in Europe are in their third year of struggling with high energy prices, strict environmental rules, and cheap imports from online retailers, which are hurting local factories.
Mayor Fox says global economic uncertainty is now impacting people locally.
“From a municipal standpoint, we are concerned with loss of tax base and utility revenue that has an impact on our sustainability,” said Fox
The mill contributes around 10 per cent of municipal tax revenue and close to 13 per cent of utility revenue.
Fox said he is most worried about utility revenue right now and is working on emergency plans to lessen the blow on the other ratepayers.
Since 2023, Fox and his office have been focused on tax base growth with the idea that the mill might close one day.
Now that the day has come, he said the focus must shift to preserving current assets, finding ways to update the mill, supporting and promoting industrial growth, and ensuring long-term, sustainable service to residents.
