Irving Paper Taking Downtime Again Due to Skyrocketing Electrical Rates in New Brunswick

Irving Paper manufactures 400,000 tonnes of paper annually, over 95 per cent of which is exported to 65 countries. Current electricity rates have a massive impact on Irving Paper's ability to compete.

Jan. 30, 2025 - The Government of New Brunswick's (Canada) promised third-party audit on skyrocketing NB Power electricity bills is welcomed by both residential ratepayers and Irving Paper, who has consistently warned New Brunswick's uncompetitive industrial rates are having a negative impact on the provincial economy.

Irving Paper will once again shut down 50 per cent of its operations for an undefined period in response to the current unprecedented power rates.

"We empathize with residential customers' rate shock. We have been experiencing the same for the last several years, and have been raising the alarm for months," said Mark Mosher, Vice President of Pulp & Paper, J.D. Irving, Limited. "As Canadian manufacturers face more and more significant headwinds, it is becoming increasingly difficult to shoulder this type of impact and remain competitive in an international market.

"New Brunswick will see a further 10 per cent increase in April 2025, making the situation even worse," Mosher added.

Over 95 per cent of Irving Paper's annual manufacturing output (400,000 tonnes of paper) is exported to 65 countries.

As NB Power's largest electricity consumer, Irving Paper has repeatedly asked that the utility review its electricity rates, which are 22 per cent higher than the Canadian average industrial rate and climbing. In the past, annual costs have averaged around $60 million. In 2024 that price tag surpassed $83 million and is expected to reach the $100-million mark in 2025 - even with significant downtime factored in.

Located at 435 Bayside Drive in Saint John, New Brunswick, Canada, Irving Paper is a world class manufacturer of graphic paper for use in magazines, catalogs, newspapers and advertising flyers. It directly employs 310 people and supports over 300 suppliers in New Brunswick, with a total of $144 Million in purchases in 40 communities in 2023. It is also a major consumer of wood chips from New Brunswick sawmills which are supplied, in part, by local private woodlots and marketing boards.

SOURCE: J.D. Irving, Limited

Read a related article: Irving Paper Again Reduces Operations Temporarily Due to Record High Industrial Electricity Rates - Dec. 3, 2024.