Uncertainty hangs over Nackawic after pulp mill announces temporary shutdown

CANADA Uncertainty hangs over Nackawic after pulp mill announces temporary shutdown By Rebecca Lau & Johnny James Global News Posted September 18, 2026 4:32 pm Updated September 18, 2026 5:25 pm 2 min read A pulp mill in Nackawic that is the backbone of the rural New Brunswick community's local economy, is facing a temporary closure. It will impact hundreds of workers. Johnny James spoke with those close to the situation about the next steps and the mill's future. LEAVE A COMMENT SHARE THIS ITEM ON FACEBOOK SHARE THIS ITEM ON X SEND THIS PAGE TO SOMEONE VIA EMAIL SEE MORE SHARING OPTIONS DESCREASE ARTICLE FONT SIZE INCREASE ARTICLE FONT SIZE A pulp mill that’s the backbone of a rural New Brunswick community’s local economy is facing a closure that will impact hundreds of workers. AV Group NB Inc., a subsidiary of the India-based Aditya Birla Group, announced Thursday it would temporarily idle its AV Nackawic facility west of Fredericton around the end of October. AV Group says about 350 workers will be out of work, and attributed the decision to “prevailing market conditions” and other challenges. “Nackawic has been challenging for a number of years. This was not a flippant decision by any means,” said Mike Legere, AV Group’s director of government relations and communications. “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, and really the price for it is stable, but is not at all keeping up with production costs.” STORY CONTINUES BELOW ADVERTISEMENT Nackawic-Millville Mayor Tim Fox says the news isn’t surprising since there was already a slowdown in wood deliveries to the mill last month. Get daily Montreal news Get daily Montreal news delivered to your inbox so you'll never miss the day's top stories. SIGN UP FOR DAILY MONTREAL NEWSLETTER GET STARTED BY PROVIDING YOUR EMAIL ADDRESS, YOU HAVE READ AND AGREE TO GLOBAL NEWS' TERMS AND CONDITIONS AND PRIVACY POLICY. “(We) started having some concerns in August when they stopped purchasing roundwood, so it’s not a huge shock, although we are disappointed that they took the decision they did,” he said. The mayor added it’s an uneasy time for their community, and the province’s forestry industry at large. “It’s no secret the global forest industry is not great right now. There is a lot of uncertainty, and that plays heavily into the decisions that were made,” Fox said. 2:32 Slowdown in…