The Canada Infrastructure Bank has finalized a $660‑million loan to Irving Pulp and Paper to support a large‑scale modernization of its west Saint John mill.
Irving says the $1.1‑billion project, known as Project NextGen, will replace equipment dating back to the 1970s.
“The loan will help us invest in innovation and sustainability, while staying true to what matters most, creating good jobs, delivering value to our customers and strengthening the places we call home,” Jim Irving, co‑CEO of Irving Pulp and Paper, said in a release.
Planned upgrades include a new recovery boiler, steam turbine and generator that are expected to produce up to 145 megawatts of renewable energy.
About 50 megawatts will power the mill itself, while the rest will be sold to NB Power under a purchase agreement.
Construction is expected to generate more than 2,200 person‑years of employment and $539 million in income, according to an economic impact assessment commissioned by Irving Pulp and Paper.
The company adds that more than 600 long‑term jobs are also expected to be created across the forestry supply chain.
Irving says the modernization is expected to make the mill energy self‑sufficient, eliminate the use of heavy fuel oil and reduce emissions per tonne of pulp by 50 per cent once the work is complete.
The company also projects production will rise by more than 70 per cent, positioning the mill among the top 10 global producers of softwood Kraft pulp.
Ehren Cory, CEO of the Canada Infrastructure Bank, said that the loan will support one of New Brunswick’s largest employers while expanding renewable energy generation in the province.
Ron Marcolin, vice‑president of Canadian Manufacturers and Exporters, called it the largest investment in Canada’s forest products industry in more than 30 years.
