$513M in upgrades invested in J.D. Irving Ltd. mills

SAINT JOHN – J.D. Irving Ltd. is investing $513 million into their mills across the province, an announcement that comes a day after the province lifted a cap on softwood.

“We needed that extra wood to make sure that the industry will make that kind of investment that Mr. Irving made today,” said Natural Resources Minister Paul Robichaud at the news conference Wednesday.

The province increased their softwood cap by 660,000 cubic metres as part of their forestry strategy released Wednesday. That means 20 per cent more softwood will be available to cut on Crown land.

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Jim Irving, co-CEO of J.D. Irving Ltd. said they couldn’t have made the investment without the increase.

“There’s no point in spending money, because it’s a lot of money, and it’s a very competitive environment,” Irving said. “To compete we have to have enough wood, otherwise you can’t amortize the capital. So that’s why it’s so important to have a growing wood supply.”

According to J.D. Irving Ltd., it’s the largest Canadian pulp mill  investment since 1993.

First phase will cost $198 million over two years and includes a new chip screening and handling system and a pulp digester to replace the existing 14 digesters that cook the wood chips.

The company said that will reduce air and noise emissions.

The second phase will cost $250 million over 30 months and includes the construction of a new pulp dryer.

The investments could mean about 1.2 million hours of construction work, equaling 600 full-time equivalent jobs. The company is also investing another $63 million into Chipman, Doaktown, St. Leonard and Sussex mills.

As part of the Environmental Impact Assessment process for this project, a public meeting will be held at St. Patrick’s School in Saint John on March 25.