09/17/2026
*AV Group to Temporarily Idle Nackawic Pulp Mill, 228 Workers Facing Layoffs*
AV Group NB Inc. said the Nackawic facility will pause its operations by the end of October amid "continuing challenges presented by prevailing market conditions and broader macroeconomic factors."
AV Group NB Inc. will continue to monitor the market situation and business conditions and assess future scenarios for the facility," the company said in a news release.
"The Atholville pulp mill facility of AV Group NB Inc. is not affected by this decision."
Wood deliveries to the mill were halted in August as the company worked to reduce its existing inventory.
While the company is describing the move as a temporary idling, Unifor says all of its members at the Nackawic facility will be laid off.
The Nackawic facility is a major economic contributor to the Nackawic-Millville area. According to the River Valley Sun, the mill and related spin-off employment account for close to half of the rural community's tax base. The shutdown is expected to have effects beyond the mill itself, including on forestry operations, truckers, contractors, suppliers, local businesses and families.
Unifor National President Lana Payne called the announcement a devastating development for workers and the community.
"This is a devastating day for our AV Nackawic members and their families who have built their lives around this mill, and for an entire community that has depended on this operation for generations,” Payne said.
Unifor represents approximately 228 active workers at the Nackawic mill through Local 219. The union says it will continue working with its members and governments to explore options for protecting the operation and its jobs.
The union has previously raised concerns about the long-term future of the Nackawic and Atholville facilities. In June, Unifor said the two mills collectively account for approximately 70 per cent of sea-can exports moving through the Port of Saint John. The union has also proposed exploring diversification opportunities at the facilities, including xylitol, other chemical products and bioenergy.
Unifor has also questioned the level of investment being made in the Nackawic operation compared with other facilities owned by the India-based Aditya Birla Group. The union says it has been working with the provincial government and other stakeholders to identify potential solutions for the mill.
New Brunswick Premier Susan Holt said the announcement will have an impact well beyond the mill's workforce.
“Today's news that AV Group plans to temporarily idle its Nackawic mill is very difficult for the workers, their families and the entire Nackawic-Millville community,” Holt said in a statement.
She described AV Nackawic as an important part of the community and the province's forest sector, adding that the effects of the decision will extend to families, local businesses and the broader region.
Holt said her government has been in contact with community leaders and Unifor and is putting a support plan in place for those affected.
“Teams across government are working together to make sure people have access to the support they need, and we will share more in the coming days,” Holt said.
The union is also expected to work with provincial and federal governments on employment insurance issues and other supports for affected workers. An emergency meeting for AV Nackawic employees has been scheduled for September 22.
The temporary idling is scheduled to take effect November 4, 2026. The future of the Nackawic operation remains uncertain.
*Not Sussex related, but we can certainly sympathize with this community after the multiple closures recently in our region
Photo Source: Google
