Nackawic’s Pulp Mill Pauses Operations, Community Faces Uncertainty

AV Group NB Inc., a New Brunswick arm of the India‑based Aditya Birla Group, told employees on Thursday that its AV Nackawic facility will be temporarily idled around the end of October. The decision, which the company says is driven by “prevailing market conditions,” will see roughly 350 workers placed on short‑term layoff.

Mike Legere, the director of government relations and communications for AV Group, tried to explain the move without sugar‑coating it. ‘Nackawic has been challenging for a number of years. This was not a flippant decision by any means,’ he said, adding that there’s a current surplus of dissolving‑grade pulp flooding the market.

That oversupply, Legere explained, has kept prices stable—but not high enough to cover the plant’s production costs. ‘There is presently a surplus of dissolving‑grade pulp on the marketplace, which compounds the problem in terms of trying to get a higher price realization,’ he noted.

Mayor Tim Fox of Nackawic‑Millville wasn’t surprised. He recalled that wood deliveries to the mill had already slowed down last month, a warning sign that the plant’s feedstock was dwindling. ‘We started having concerns in August when the wood shipments started to taper off,’ Fox said, reflecting the anxiety felt by many in the town.

The mill has long been the economic backbone of the rural community west of Fredericton, providing steady wages and supporting local businesses. Its temporary closure now throws a cloud over the town’s future, prompting both workers and officials to brace for a period of uncertainty.

While AV Group has not set a firm date for reopening, it indicated that the shutdown is intended to be short‑term, pending a rebound in pulp prices and demand. In the meantime, the company says it will work with employees on possible redeployment options, though many fear the pause could become longer than planned.

Residents are watching closely, hoping for a swift recovery in the global pulp market that could bring the plant back online and restore the jobs that keep Nackawic humming.