AV Nackawic Mill manager says wood supply not guaranteed

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Canadaeast News Service

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FREDERICTON - The successful conversion of the AV Nackawic Mill to dissolving pulp comes with a warning that a secure supply of hardwood is needed if the mill is to thrive in its new venture.

AV Group president and CEO Peter Vinall said wood supply is tight in the province and the mill has not procured the supply of Crown or private wood it needs. "We need some additional Crown wood," Vinall said. "Right now, the way the markets are, particularly in the U.S., there is a big drain of private wood in that direction and we can't compete."

The AV Group, a member of the Aditya Birla Group of India, announced the successful $90-million conversion yesterday of AV Nackawic from hardwood paper grade pulp to the production of dissolving pulp.

Dissolving pulp is the main raw material used in the manufacture of viscose staple fibre (rayon). The AV Nackawic operation is initially set to produce 190,000 tonnes per year of high-quality dissolving pulp, primarily for consumption in Aditya Birla viscose plants in India, Thailand, Indonesia and China.

The company said plans are underway to increase output significantly, but it's subject to the availability of additional hardwood in New Brunswick. Vinall said the lack of wood supply could impede a future expansion, a move that has the potential to create up to 30 new jobs. The mill employs around 300.

"That is the constraint," Vinall said. "We don't have any commitment on additional hardwood."

Vinall's concerns come the same day the province released a pair of reports on the future of the province's forestry sector.

Despite the concern over wood supply, Vinall said he was pleased the conversion to dissolving pulp has been completed.

"The initial quality levels have exceeded our expectations," Vinall said. "We are able to quickly ramp up our production levels while continuing to develop our quality parameters thanks to advanced cooking technology."