The OSB mill in Miramichi is closing for six weeks and laying off 29 workers. In the press release below, the company cites high inventory and tariffs as the reasons for this business decision. The local forest product marketing board that supplies the mill is disappointed with the decision and does not accept the tariff explanation.

Arbec plant manager Adam Stone said the union was notified of the decision, and the six-week shutdown could change depending on market conditions.

“Like many other New Brunswick businesses, our exports to the U.S. have been drastically affected by the current tariff situation. We are hopeful that this pause in production will allow us to rebalance our inventories and find additional markets.
Our employees are like family, and we are mindful of the effects that these actions will have on them, our valued suppliers, and the community. These are not easy decisions, but necessary to ensure the mill’s long-term sustainability.”

Stone said the company is working closely with government agencies to assist affected employees.  GO Miramichi reached out to the union leadership for comment but has not received a response yet.

Forest Marketing Board Disappointed in the Closure

Norman Richardson, President of the Northumberland County Forest Products Marketing Board, expressed disappointment with the decision to close the mill, as it affects the local forest industry.

Richardson is not convinced that tariffs are the primary reason for the mill’s closure, as he understands the finished OSB product is exempt from tariffs. He said Arbec confirmed this with the Marketing Board.

“My problem with what the company is doing is that during COVID, they made millions, and they were supposed to use some of that money to keep buying wood, so we shouldn’t have the problems we have,” Richardson stated.

In 2020 and 2021, prices for OSB—the product made in Miramichi by Arbec—skyrocketed by 500%. [Link to source]

“It was just two years ago when they had a big meeting with Arbec, and we were told, 'We’re going to stay open here for another 10 years, for sure.' That’s what they told us. So it’s a bit of a shock today that they’re going to close for seven weeks, especially since they’re hardly buying any wood. This will hurt the woodlot owners and the marketing board.”

Richardson noted that Arbec is the only company buying wood locally, especially poplar. He explained that poplar can also be sold to the mill in Nackawick, but it’s a long haul to truck it there. Additionally, any wood already cut and piled for Arbec cannot be sold to Nackawick because Nackawick only accepts logs of random length, while Arbec’s logs are cut to specific lengths. Richardson also mentioned that Arbec buys pulpwood (wood too small for sawmills), but the price is very low, as it is purchased by weight, and becomes less profitable as it dries out.

Thea McEvoy, Accounts Manager for the Marketing Board, said the monthly quotas are at risk because of the closure.

“The company has an agreed monthly quota with the Marketing Board and the woodlot owners, but they stopped buying wood for two weeks in June and July and have reduced the July quota by 50%.” McEvoy expects a reduction in the August quota as well. She noted that Arbec’s yearly quota with the Marketing Board has been 40,000 cubic meters, while the quota with the woodlot owners is 60,000 cubic meters. The company also purchases wood from Crown Land sources.

Richardson added that even though the company states they will reopen in seven weeks, you can never be certain. He warned that anyone cutting and piling wood for future sales to Arbec is taking a risk, as it cannot be sold elsewhere.