AV Group in New Brunswick braces for higher energy costs for pulp mills

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AV Group in New Brunswick braces for higher energy costs for pulp mills

April 06, 2010 - 10:22
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SAINT JOHN, NB, April 6, 2010 (Telegraph Journal ) -The AV Group is about to watch its bottom line come under tremendous pressure as the operator of two pulp mills braces for power rates that could rise by 20 per cent over the next five years.

Kevin Jewett, vice-president of wood fibre, said the Atholville and Nackawic operations stand to lose about $2 million in annual savings that were guaranteed in a power agreement now scrapped by the New Brunswick and Quebec governments.

Jewett said political parties of every stripe must now offer industry an alternative that will cushion the blow of expensive and dirty power.

New Brunswick Business Journal - AV Group braces for increased costs