Irving secures $660M loan to modernize Saint John mill

Key Takeaways:

• Canada Infrastructure Bank is providing a $660 million loan to support Irving Pulp & Paper’s $1.5 billion modernization of its Saint John mill, the largest forestry investment in Canada since 1993
• The upgrades will boost pulp production by over 70%, make the mill energy self-sufficient, cut emissions per tonne by 50 per cent and eliminate heavy fuel oil use
• The project is expected to generate $539 million in construction income, create more than 2,200 person-years of work, and add over 600 long-term jobs across the forestry supply chain

The Whole Story:

The Canada Infrastructure Bank (CIB) has reached financial close on a $660-million loan to Irving Pulp & Paper, backing a $1.5-billion modernization of the company’s west Saint John pulp mill in what is being called the largest investment in Canada’s forest products industry since 1993.

The project, branded as Project NextGen, will see the replacement of decades-old equipment with modern technology, including a new recovery boiler, steam turbine and generator capable of producing up to 145 megawatts of renewable energy. Roughly 50 megawatts will be used to power the mill itself, while the remainder will be sold to the provincial grid under a power purchase agreement with NB Power.

Company officials say the upgrades will boost production of softwood Kraft pulp by more than 70%, positioning the mill among the world’s top 10 producers, while also halving greenhouse gas emissions per tonne of pulp. Heavy fuel oil will be eliminated as an energy source, making the mill energy self-sufficient and “a global leader in environmental performance for this sector.”

Ehren Cory, chief executive of the Canada Infrastructure Bank, said the financing is intended to bridge lending gaps and enable significant private capital investment. “As an impact investor, the CIB provides loans to accelerate projects which deliver long-term benefits to Canadians and the economy,” Cory said. “Our $660 million loan for Saint John mill’s modernization comes at a critical time for the region—supporting one of New Brunswick’s largest employers and exporters, creating hundreds of long-term jobs across the forestry supply chain and expanding renewable energy generation within the province.”

Local MP Wayne Long, who represents Saint John–Kennebecasis, called the project an important boost for the community. “The CIB’s investment toward the Saint John Mill Modernization project will create good jobs while supporting the energy transition in New Brunswick,” he said. “This investment also expands production leading to direct economic benefits and boosting the strategically important forestry sector. Your new federal government is focused on building and growing the Canadian economy to be the strongest in the G7.”

Irving Pulp & Paper co-CEO Jim Irving said the investment represents a generational step for the company and the community. “Project NextGen is an important step forward for our people, our customers and our community,” Irving said. “The CIB’s loan helps 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.”

Industry groups also praised the modernization. Ron Marcolin, vice-president of Canadian Manufacturers and Exporters, said the investment will help cement the mill’s role at the centre of New Brunswick’s forest economy. “Project NextGen will increase the capacity of the Irving Pulp & Paper mill while also increasing the green energy it generates, making it one of the top producing kraft pulp mills in the world and a global leader in environmental performance,” he said. “This $1.5 billion project is the largest investment in the Canadian forest products industry since 1993 and will help secure the mill’s future as the heart of the province’s forest value chain, at a time when many North American centres are competing to attract this kind of private investment.”

The economic impact is expected to ripple across Saint John and beyond. A third-party assessment prepared by Jupia Consultants estimates the construction phase will generate about $539 million in employment income and create more than 2,200 person-years of work. Once completed, the project is forecast to create more than 600 new jobs across the forest supply chain, with employment income in the sector rising by nearly 40%.

Local business leaders said those numbers will make a difference. Shannon Merrifield, CEO of the Saint John Region Chamber of Commerce, called the project “a vote of confidence in our community.” She added, “Our local member businesses—from restaurants to hotels and everything in between—will benefit from the hundreds of additional contractors coming to work in the region at a time when economic uncertainty has been at the forefront.”

Arlene Dunn, CEO of the Saint John Construction Association, said the investment will sustain jobs in construction and ensure skills are passed on to younger workers. “Project NextGen is vital for the local construction community and will play a key role in the future economic success of the west side pulp mill and the City of Saint John,” Dunn said. “It will help ensure skilled workers remain in the city, bringing economic success and critical training opportunities for the next generation of skilled workers.”

With federal backing, company financing and broad community support, Project NextGen is being positioned as both an economic driver and an environmental milestone for New Brunswick.