Grasim Industries, through its joint venture AV Group NB Inc. (AVNB), has announced the temporary idling of its dissolving grade pulp mill located in Nackawic, New Brunswick, Canada. The facility, with a capacity of approximately 190K TPA, will cease operations around the end of October 2026. This decision is a result of ongoing challenges in prevailing market conditions and broader macroeconomic factors affecting the pulp industry.
Temporary Idling of Nackawic Pulp Mill Announced
Grasim Industries Limited has provided an update regarding its joint venture, AV Group NB Inc. (“AVNB”), which operates two dissolving grade pulp mills in New Brunswick, Canada. AVNB’s facility in Nackawic, New Brunswick, with a production capacity of around 190K TPA of dissolving-grade pulp, is set to be temporarily idled. The commencement of this idling is expected around the end of October 2026.
Market Conditions Drive Decision
The decision to temporarily suspend operations at the Nackawic mill follows a thorough assessment of the current business environment. AVNB cited prevailing market conditions and broader macroeconomic factors as the primary drivers for this strategic move. This development impacts one of the two mills operated by AVNB, the other being located in Atholville.
Investment and JV Overview
Grasim Industries holds a 45% stake in AVNB, with a total investment amounting to Rs. 187.41 crore. This investment comprises Rs 153.04 crore in equity shares and Rs 34.37 crore in preference shares. The JV’s combined pulp capacity stands at approximately 332K TPA. The company has stated that this communication will be uploaded to its website, www.grasim.com.
Source: BSE
