The Nackawic mill in New Brunswick, Canada, will temporarily idle from 4 November, with the company citing prevailing market conditions and other challenges. Mill workers and their union are pressing for government action ahead of the shutdown.
Why this mattersA temporary idling blamed on market conditions takes the Nackawic mill offline from November and has drawn calls from workers and their union for government intervention.
- The Nackawic mill is scheduled to idle temporarily on 4 November 2026.
- The operator cited prevailing market conditions and other unspecified challenges for the decision.
- Mill workers and their union are seeking government action in response to the planned idling.
- AV Nackawic will lay off around 350 workers at the end of October 2026.
- Unifor Local 219 held a rally on 16 October 2026 as part of a National Day of Action.
- New Brunswick Premier Susan Holt and Nackawic-Millville Mayor Tim Fox attended the rally.
- Local officials are seeking a 'warm idle' that keeps the mill maintained over winter rather than a full 'cold idle' shutdown.
- Premier Susan Holt called a restart of the Nackawic mill very unlikely in comments on 16 October 2026.
- The mill produces about 190,000 tonnes a year of dissolving-grade pulp used mainly for textiles.
- Unifor identified 228 affected members at the site as part of a national forestry day of action across 36 Canadian communities.
- A provincial labour force adjustment committee involving the company, union, and federal and provincial governments is coordinating worker assistance.
The AV Nackawic pulp mill in New Brunswick is expected to shut on 4 November 2026, ending 228 unionised jobs and affecting hundreds more employees, contractors and connected workers. The mill has been the community's largest employer for more than half a century; the deputy mayor puts the site at about 350 direct jobs and USD 25-28m (CAD 35-40m) of direct economic impact. Nackawic-Millville, which lost another mill in 2004, is seeking land to expand an industrial park now at capacity.
Why this mattersClosing a mill that has anchored a single-employer town for half a century removes pulp capacity and leaves the municipality rebuilding its tax base.
- The AV Nackawic pulp mill is expected to shut down on 4 November 2026.
- 228 unionised workers will lose their jobs, with hundreds more employees, contractors and connected workers affected.
- Deputy mayor Greg MacFarlane cites about 350 direct jobs and USD 25-28m (CAD 35-40m) in direct economic impact.
- It is the second mill closure in Nackawic, following one in 2004.
- Mayor Tim Fox says the municipality's industrial park is at capacity and it is discussing acquiring adjacent land.
- Federal secretary of state for financial institutions Wayne Long says AV Group NB, an Aditya Birla Group subsidiary, has not yet submitted a formal request for federal support.
- The company attributes the closure to dissolving-pulp oversupply, weak prices and competition from South Africa, South America and Indonesia.
- MP Richard Bragdon says the mill's industrial carbon tax bill exceeds USD 1.4m (CAD 2m) a year.
- Canada added a USD 5.3bn (CAD 7.5bn) tariff-relief package in August 2026, on top of USD 17.7bn (CAD 25bn) deployed over 18 months.
- AV Group NB attributes the idling to difficult market conditions and broader economic factors
- The company now expects the mill to be idled from the end of October 2026
- Unifor says AV Group NB's Nackawic and Atholville mills together account for 70% of container exports through the port of Saint John.
- Unifor attributes the closure to under-investment at Nackawic while Aditya Birla Group continued investing in other operations outside Canada.
- Unifor proposed diversification into xylitol, other chemicals and bioenergy at Nackawic and Atholville in a June letter to the New Brunswick government.
- Unifor has engaged New Brunswick's natural resources minister John Herron and the provincial premier to seek alternatives to closure.
- Port Saint John CEO Craig Bell Estabrooks says the Nackawic mill accounted for 5 to 10 per cent of the port's overall container volume.
- The mill made up 15 to 20 per cent of the port's exports in some years, according to Estabrooks.
- Estabrooks says the port's diversified sector mix will help offset the lost revenue.
- Provincial and local officials met on 25 September 2026 to set up an action plan for workers and the community affected by the mill closure.
- 588 students across three schools in the Anglophone West School District will have fees waived or reduced.
- A job fair and employment counselling booth have opened in the Nackawic Shopping Mall, with sessions starting the week of 28 September 2026.
- The Nackawic mill represents 8-10% of Port Saint John's containerised traffic.
- The mill accounts for 15-20% of Port Saint John's export containers.
- Port Saint John is seeking other shippers to replace the lost container volume.
- Unifor Local 219 has asked AV Group NB to keep the mill heated through winter to prevent cold-weather damage.
New Brunswick's government has submitted a confidential bid for privately owned timberlands linked to AV Nackawic's dissolving pulp mill, to secure wood-fibre access as the facility halts production on 4 November 2026. The province has separately engaged AFRY to review options for the mill, including potential buyers, while LandVest markets a related 106,574-acre timberland portfolio with sealed bids due 17 December 2026.
Why this mattersA government move to control fibre supply signals a possible restart path for a major dissolving-pulp asset, shaping regional wood markets and mill employment.
- Mill production is scheduled to stop on 4 November 2026.
- The facility employs approximately 350 people.
- Annual dissolving-pulp capacity is around 190,000 tonnes.
- LandVest's Project Riverwood portfolio covers 106,574 acres (about 43,130 hectares) in York and Carleton counties.
- Sealed bids for the timberland portfolio are due 17 December 2026.
- New Brunswick's government also engaged AFRY to assess options for the mill, including prospective buyers.
AV Nackawic will halt operations at its pulp mill in Nackawic, New Brunswick, next month, leaving about 350 employees out of work. The company has described the shutdown as temporary. The mill is one of the community's largest employers.
Why this mattersThe stoppage takes a pulp mill out of regional supply and idles about 350 workers in a small New Brunswick community.
- About 350 employees at AV Nackawic will be out of work from next month.
- The company describes the shutdown as temporary.
- AV Nackawic is one of the largest employers in the community of Nackawic, New Brunswick.
- Unifor says over 200 union members will lose jobs from 4 November 2026
- AV Group NB is an affiliate of India's Aditya Birla Group
- All of the mill's pulp is sold to the textile industry, mostly to customers in Asia
- Company cites five years of rising production costs outpacing profits plus tariff-driven market instability
- The Nackawic mill, west of Fredericton, has operated for more than 50 years
- New Brunswick's Natural Resources Minister said the government is preparing support for affected workers
- More than 200 of the roughly 350 mill employees are Unifor union members
- New Brunswick's provincial government is assembling a cross-department response plan for workers, contractors and suppliers affected by the idling
- The idling also affects related timber harvesting, transport and maintenance services
- The government says the idling is not a permanent closure and is awaiting further detail from AV Group on duration and restart conditions
- Nackawic mill has annual capacity of approximately 190 KTPA of dissolving-grade pulp
- Idling attributed to prevailing market conditions and macroeconomic factors
- AV Group NB's separate Atholville pulp mill is unaffected
