AV Group NB’s Nackawic dissolving-grade pulp mill in New Brunswick, Canada, is scheduled to enter a temporary idle on November 4, 2026, with approximately 350 employees expected to be laid off.

The mill’s power boiler ran for the last time on October 28, according to Grant Charlton, president of Unifor Local 219. Workers have since been cleaning and preparing equipment for a possible restart, although no restart date has been announced.

Unifor said AV Nackawic informed the union on September 17 that the mill would temporarily idle on November 4 and that all union members would be laid off on that date. Unifor represents approximately 228 workers at the facility, while the total workforce is estimated at around 350 employees.

AV Group, part of India-based Aditya Birla Group, announced the temporary idling in September, citing prevailing market conditions and broader macroeconomic factors. The facility has an annual production capacity of approximately 190,000 tonnes of dissolving-grade pulp.

The company's other New Brunswick pulp mill, in Atholville, is not included in the Nackawic idling decision, although AV Group has acknowledged that it faces similar external market challenges.

New Brunswick submits bid for timberland

The New Brunswick government has submitted a confidential bid to purchase timberland supplying the Nackawic mill, as it seeks to preserve the region's wood supply for potential future forestry operations.

The Canadian Press reported on October 28 that the provincial bid concerns 178 km² of land and does not include the mill itself. Natural Resources Minister John Herron said the purchase was important to ensure sufficient wood supply for any future forestry industry in the region. The bid is subject to a commercial non-disclosure agreement, and the government has not disclosed its proposed price.

Separately, LandVest is marketing a timberland portfolio covering 106,574 acres (approximately 431 km²), primarily in York and Carleton counties, under the name Project Riverwood. According to the listing, the property contains approximately 4.475 million m³ of standing timber and has historically been managed in conjunction with the AV Nackawic mill. Sealed bids are due by December 17, 2026.

The two reported land areas refer to different descriptions of the timberland involved. The available reports do not establish precisely how the 178 km² covered by the provincial bid relates to the larger LandVest portfolio.

Herron said the government wants the timberland to remain connected to the Nackawic region's wood supply, helping secure fibre for a potential future industrial operation. Local Progressive Conservative MLA Kris Austin has also supported the provincial bid, warning of the risk that a private buyer could acquire the land without maintaining its role in the regional forestry sector.

Government commissions assessment of mill options

Alongside its timberland bid, the provincial government has commissioned management consulting firm AFRY to assess the Nackawic and Atholville mills and examine possible options for their future.

The assessment is expected to examine the condition of the facilities and potential scenarios, including repairs, a possible sale, repurposing or the involvement of a new operator. Some findings are expected by the end of the year.

Herron has acknowledged that the Nackawic facility requires repairs and has faced years of underinvestment. The government does not own the mill and cannot determine whether AV Group will resume operations, but officials are examining possible ways to support a future industrial solution for the site.

The timberland bid and the AFRY assessment are separate government initiatives. Neither represents an agreement to restart the existing mill.

Heating decision remains unresolved

Whether AV Group will maintain heating at the Nackawic mill during the temporary idle remains an important unresolved issue, with implications for both the condition of the facility and the possibility of a future restart.

Unifor Local 219 president Grant Charlton has said keeping the facility warm would help preserve the equipment and maintain the possibility of restarting operations.

Premier Susan Holt has urged AV Group to keep the mill in a warm idle, warning that allowing it to go cold could trigger an Environmental Impact Assessment (EIA).

“We believe that Aditya Birla should keep that idling warm because they will face an EIA if they don't, and that will cost them more time and money than it would to keep the facility warm,” Holt said, according to CTV News.

Natural Resources Minister John Herron has also raised the possibility that a cold shutdown could trigger an environmental assessment. However, the reports describe this as a potential consequence; they do not establish that an assessment has been initiated or specify its legal basis or scope.

Separately, Carleton-York MLA Richard Ames raised concerns about the presence of chromium at the site. CTV News reported that Ames warned of potentially serious environmental consequences if the mill's heat were turned off. His concerns were distinct from Charlton's focus on maintaining the equipment.

AV Group has not confirmed how it will manage heating during the idle. Mike Legere, the company's director of government relations and communications, told CTV News that AV Group had “not committed to a decision on the configuration of the idling at Nackawic with regard to heating.”

No restart plan announced

The provincial timberland bid, the assessment of the mills and the unresolved heating decision come as workers and the local community face uncertainty over the future of the Nackawic operation.

Unifor has been seeking potential investors and forestry companies that could help keep the facility operating or support a new industrial use. The union has also raised concerns about the mill's long-term viability and the investment needed to maintain and modernize its equipment. Unifor national president Lana Payne has said she has approached other companies in the forestry sector to explore their interest in the facility.

For now, AV Group has not announced a restart plan or a decision on the longer-term configuration of the facility. The outcome of the provincial assessment and the timberland sale process will be important developments in determining what future, if any, the Nackawic site and its regional wood supply may have.

Related coverage: AV Group to temporarily idle Nackawic mill as Atholville faces similar challenges