Baker Brook, N.B. Sawmill to be Closed Permanently

SEATTLE (Scrap Monster): J.D. Irving announced its decision to close its sawmill in northwestern New Brunswick. The company press release noted that the Baker Brook sawmill will close on 1^st November, 2019. The closure is likely to lead to loss of around 65 jobs. The notable declines in supply of cedar and extremely weak markets for byproducts are being cited as the reasons for the closure.

The statement issued by the company stated that baker Brook plant has been impacted by shortage of cedar within a reasonable distance. Estimates indicate that nearly 50% of the cedar supply to the mill came from the U.S. Also, markets remain weak for byproducts including wood chips, shavings and sawdust.

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Announcing the decision, Jerome Pelletier, vice-president of the sawmill division, J.D. Irving said that the decision to close the mill has not been an easy one. The decision has already been conveyed to union and employees. The move is part of company’s efforts to consolidate its operations. The company will try to offer placement opportunities to affected employees at its other facilities across the province, Pelletier added.

The closure of the sawmill will result in loss of nearly $100,000 in property taxes and other taxes to the region.

Earlier, during mid-September this year, J.D. Irving had announced temporary closure of its mills in Saint John, New Brunswick, on account of maintenance works.