Irving Paper Ltd. says it will permanently close half of its operations because New Brunswick’s industrial electricity rates are “uncompetitive.”
The Saint John manufacturer of paper used for magazines, catalogues and newsprint says it is cutting 140 jobs effective immediately.
Irving Pulp & Paper vice-president Mark Mosher says the decision to permanently downsize was difficult but necessary to ensure the company’s long-term sustainability.
He says the skyrocketing electricity rates in the province have made it increasingly difficult to remain competitive in an international market.
While Irving Paper has been trying to work with the province to find a solution to keep all of its operations alive, Mosher says there is no viable alternative.
The company will keep pursuing ways to keep the remaining half of the business in operation ahead of an additional 10 percent electricity rate hike Mosher says is coming on April 1.
