AV Nackawic pulp mill to close on 4 November, ending 228 union jobs
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.