Nackawic, New Brunswick
Encyclopedia
Nackawic is a town located 65 km west of the city of Fredericton
Fredericton, New Brunswick
Fredericton is the capital of the Canadian province of New Brunswick, by virtue of the provincial parliament which sits there. An important cultural, artistic, and educational centre for the province, Fredericton is home to two universities and cultural institutions such as the Beaverbrook Art...
on the east bank of the Saint John River in New Brunswick
New Brunswick
New Brunswick is one of Canada's three Maritime provinces and is the only province in the federation that is constitutionally bilingual . The provincial capital is Fredericton and Saint John is the most populous city. Greater Moncton is the largest Census Metropolitan Area...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. The town occupies an area of about 9 km² and is surrounded by the parishes of Southampton
Southampton, New Brunswick
Southampton is a Canadian rural community in York County, New Brunswick.The community is located south of Southampton Junction, a station located within the village of Millville, created when the New Brunswick Railway was constructed in the 1870s....
and Queensbury
Queensbury, New Brunswick
Queensbury is a Canadian parish in York County, New Brunswick.Its population in the 2006 Census was 1,215.-Delineation:Queensbury Parish is defined in the Territorial Division Act as:-Population:Population trend-Language:...
with the Village of Millville
Millville, New Brunswick
Millville is a Canadian village located in York County, New Brunswick.Situated on the Nackawic River approximately 58.16 kilometers northwest of Fredericton, Millville has two combination convenience stores and gas stations, as well as a volunteer fire department and several churches...
10 km to the north.
Latitude and Longitude: 46.00°N, 67.24°W. Postal code
Canadian postal code
A Canadian postal code is a six-character string that forms part of a postal address in Canada. Like British and Dutch postcodes, Canada's postal codes are alphanumeric. They are in the format A0A 0A0, where A is a letter and 0 is a digit, with a space separating the third and fourth characters...
: E6G
History
The area was first settled in 1784 by the United Empire Loyalists, primarily through land grants to the families of soldiers who had fought with His Majesty's Regiment of Queen's RangersQueen's Rangers
The Queen's Rangers was a military unit who fought on the Loyalist side during the American War of Independence. After the war they moved to Nova Scotia and disbanded, but were reformed again in Upper Canada before disbanding again, in 1802, a decade prior to the War of 1812.-French and Indian...
during the American Revolutionary War
American Revolutionary War
The American Revolutionary War , the American War of Independence, or simply the Revolutionary War, began as a war between the Kingdom of Great Britain and thirteen British colonies in North America, and ended in a global war between several European great powers.The war was the result of the...
.
New Brunswick
New Brunswick is one of Canada's three Maritime provinces and is the only province in the federation that is constitutionally bilingual . The provincial capital is Fredericton and Saint John is the most populous city. Greater Moncton is the largest Census Metropolitan Area...
's newest village, as it exists today, began in the late 1960s and was built so those forced to relocate as the result of the Mactaquac Dam
Mactaquac Dam
The Mactaquac Dam is an embankment dam used to generate hydroelectricity in the Canadian province of New Brunswick. It dams the waters of the Saint John River and is operated by NB Power with a capacity to generate 653 megawatts of electricity from 6 turbines; this represents 20 percent of New...
being constructed would have a place to reside. Construction of the pulp mill, built to employ these displaced persons who lost their traditional farming opportunities that came with the Dam, occurred between 1967 and 1970.
Nackawic was officially incorporated as a town in 1976.
Nackawic is home to the world's largest axe
Axe
The axe, or ax, is an implement that has been used for millennia to shape, split and cut wood; to harvest timber; as a weapon; and as a ceremonial or heraldic symbol...
.
2004–2005 mill closure
The town's largest employer, from 1970 until September 14, 2004, was St. Anne Nackawic Pulp Company Ltd.. The mill closed on September 14 and its owners declared bankruptcy the following day, putting 406 people out of work. About 350 contract workers in the middle of a maintenance shutdown were also affected. The mill itself was left in a state of disassembly.Construction of the mill began in 1967, following the building of the Mactaquac Dam
Mactaquac Dam
The Mactaquac Dam is an embankment dam used to generate hydroelectricity in the Canadian province of New Brunswick. It dams the waters of the Saint John River and is operated by NB Power with a capacity to generate 653 megawatts of electricity from 6 turbines; this represents 20 percent of New...
. The plant manufactured high-quality, photographic grade kraft pulp. Increasing energy, material and labor costs here at home; new competition from overseas mills able to operate much less expensively as well as the continuing devaluation of the US dollar, combined with the rapid increase in value of the Canadian dollar, all contributed significantly to the St. Anne Nackawic plant becoming less viable.
At the same time, the provincial government had been undertaking a reorganization of Crown timber lands in New Brunswick in recent years which was rumored to include a reduction in the timber harvest for the St. Anne Nackawic mill. Additionally, the rise in use of digital cameras and resulting decline in the use of photographic paper had reduced the demand for St. Anne Nackawic's product.
It was revealed during bankruptcy proceedings that St. Anne Nackawic Pulp Company Ltd. owed $101.2 million to its creditors, including $50.2 million to unsecured creditors. It was also learned that the company-funded employee pension plans were under-funded, as allowed by law. Employees under the age of 55 were informed that it was unlikely that they would receive any pension benefits. The Government of New Brunswick later stepped in and, faced with an extremely difficult decision, created a new distribution model that would see the pension fund shared by all employees, including those in the under 55 group. Understandably, those receiving pension benefits prior to the mill’s closure were outraged at the thought of being forced to give up a portion of their pension so that the under 55 group would to have at least something to look forward to during their golden years. The loss of pension benefits and the perceived unfairness of distribution sparked an outcry for the provincial government to intervene. Legal action against the Province resulted and as of July 2007, retirees and other employees still do not know what the final outcome of the pension situation will be.
George Landegger, chairman and CEO of Parsons and Whittemore of Rye Brook, New York
Rye Brook, New York
Rye Brook is a village in Westchester County, New York, United States, within the town of Rye. Prior to the village's establishment on July 7, 1982, the area was an unincorporated section of the town of Rye...
, which was the holding company that owned St. Anne Industries which in turn owned St. Anne Nackawic Pulp Company Ltd., was responsible for ordering the shutdown. Having been unable to secure a traditional lending institution after its Bank loans were called in 2001, St. Anne Industries, in an effort to continue the operations at Nackawic, replaced the Bank and thus became the primary secured creditor of the St. Anne Nackawic mill. Many persons impacted negatively by the closure, either uninformed or unwilling to accept the cold, harsh reality of the situation, were unable to comprehend how the primary secured creditor could rightfully receive the funds to which it was entitled – enjoying the same right as the Bank in similar proceedings. Parsons and Whittemore later agreed to relinquish title to the plant and equipment, and at the same time shedding its officers and directors of their personal liability environmental – a rather serious matter that transcends all Bankruptcy law, allowing the provincial government to seek a buyer for the facility.
In addition to most of the local businesses in the Nackawic area, some of the creditors and companies affected by the closure of the mill included the Port of Saint John, Logistec Corporation, Wallenius Wilhelmsen, and Star Shipping. It is certainly notable that the aforementioned Logistec Corporation received, from the Landegger-appointed Receiver, full and complete payment for everything it was owed up to the moment of Bankruptcy. This payment was made after the Bankruptcy was declared and was successfully challenged in the Courts by the replacement Trustee. In a surprise decision that left the legal community entirely baffled, the New Brunswick Court of Appeals later ruled that this was not a preferential payment, which would have been in serious contravention of the BIA (Bankruptcy and Insolvency Act).
A group of 19 contractors working on site when the mill was closed joined together and was successful in a number of significant wins in the Bankruptcy proceedings. First, this group of 19 secured their position by placing liens on the mill property. Next, the group of 19 had the original Trustee, who also served as the Landegger-appointed Receiver, replaced with one who would better serve the best interests of all the unsecured creditors. At the first Meeting of Creditors, the original Trustee told those in attendance that there was "absolutely no money in the Estate for the unsecured creditors". However, the newly installed Trustee was successful in finding more than five million dollars. These funds were secured for the benefit of all unsecured creditors and distributed accordingly.
Then, the group of 19 was successful in its bid to have frozen all funds held by the Receiver for the benefit of the primary secured creditor, effectively preventing the primary secured creditor from realizing on its security and, the resulting removal of these monies from the Province. Eventually faced with the inability to continue funding the many challenges entirely on their own, without assistance from the other major stakeholders, the group had no choice but to release their hold on these funds.
It was very unfortunate that those representing union and staff, as well as the appointed pension fund administrator did not see fit to join the group of 19 in helping fund the efforts of the new Trustee, for if they had the 5 million dollar pot would have likely grown substantially, benefiting all the unsecured creditors — the largest portion of which consisted of the displaced employees.
In the fall of 2004, some of the laid-off workers initially offered to work without pay in order to properly mothball the plant and protect the assets against the fast-approaching harsh winter season, ensuring the plant would be more attractive to any future potential buyers. With an injection of cash from both the Federal and provincial governments of the day, the work was carried out and the mill properly secured. (All workers received full pay for their efforts.) Other workers proposed buying the mill with government assistance and running it themselves. As the provincial government was also a creditor for the plant, it solicited potential pulp and paper industry companies such as J.D. Irving Limited and Tembec
Tembec
Tembec Inc. is a paper company in Canada. Tembec has approximately 6000 employees located in Canada, United States, and France. Tembec's operating divisions include Forest Products, Pulp, Paper & Paperboard, and Chemicals....
to purchase the mothballed mill.
After several discouraging months of little interest during the fall of 2004 and winter of 2005, the provincial government entered into negotiations with Quebec-based Tembec in early winter of 2005. A deal was announced, however Tembec subsequently backed out, on March 8, 2005, claiming that it wasn't economically feasible.
However, several weeks later, on April 1, 2005, the provincial government, led by Bernard Lord’s Tories, announced that Tembec would be forming a partnership with the Aditya Birla Group
Aditya Birla Group
The Aditya Birla Group is an Indian multinational conglomerate corporation headquartered in Mumbai, India. It operates in 33 countries with more than 133,000 employees worldwide...
of India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, which would see the Nackawic mill reopened as a joint venture, with Tembec the lead operator of the facility. The plant reopened on January 16, 2006, under the AV Nackawic banner.
The Tembec-Aditya Birla Group agreement is very similar to the operation of a pulp mill in Atholville, New Brunswick
Atholville, New Brunswick
Atholville is a Canadian village in Restigouche County A4L, New Brunswick.It is located on the south bank of the Restigouche River upstream and west of the city of Campbellton....
which had been mothballed between 1988–1994 in circumstances very similar to Nackawic's, causing significant damage to the economy of nearby Campbellton, New Brunswick
Campbellton, New Brunswick
Campbellton is a Canadian city in Restigouche County, New Brunswick.Situated on the south bank of the Restigouche River opposite Pointe-à-la-Croix, Quebec, Campbellton was officially incorporated in 1889 and achieved city status in 1958.Forestry and tourism are major industries in the regional...
. After Tembec-Aditya Birla Group purchased the former Fraser
Fraser Papers
Fraser Papers Inc. is a Toronto, Ontario, Canada-based manufacturer of specialized printing, publishing, and converting papers, with customers in Canada and the US. It manages more than two million acres of forest, operates a tree nursery, and sawmills. It was spun off as a public company in 2004...
mill, the facility was converted to a dissolving pulp production operation and has operated successfully ever since as A.V. Cell Inc.
Today, in August 2008, the AV Nackawic mill is operating splendidly and the new owners are currently making a 90 million+ capital investment at the Nackawic facility. Once completed, the newly created ability to produce dissolving pulp -in addition to kraft pulp- will go a long way in helping to ensure the long-term viability of this vital area business.
Economic development
Local business people, community leaders and other economic development groups form the Nackawic Region Economic Development Team designed to encourage and assist business development in the Nackawic and Mactaquac Headpond area. Nackawic also has membership in the South West Development Corporation.Education
The town has four schools:- Nackawic Elementary
- Nackawic Middle School
- Nackawic Senior HighNackawic Senior High SchoolNackawic Senior High School is a high school located in Nackawic, New Brunswick, Canada. Nackawic High receives new students primarily from Nackawic Middle School and Keswick Valley Memorial School, if they do not choose to attend Leo Hayes High School in Fredericton.The school houses the Nackawic...
, - River Valley Christian Academy.
Famous Nackawic residents
- Casey LeBlancCasey LeBlancCassandra Beth "Casey" LeBlanc was a contestant on the 2005 edition of the popular reality television show Canadian Idol. The eldest daughter of Constance and Leo LeBlanc, she is from Nackawic, New Brunswick...
, 2005 Canadian IdolCanadian IdolCanadian Idol is a Canadian reality television competition show which aired on CTV, based on the British show Pop Idol. The show was a competition to find the most talented young singer in Canada, and was hosted by Ben Mulroney. Jon Dore was the "roving reporter" for the first three seasons...
contestant - Gordie DwyerGordie DwyerGordie Dwyer is a Canadian former professional ice hockey left winger who played five seasons in the National Hockey League for the Tampa Bay Lightning, New York Rangers and Montreal Canadiens. He is currently the head coach of the P.E.I...
, NHL hockey player. - David AlwardDavid AlwardDavid Nathan Alward is a Canadian politician, the 32nd and current Premier of New Brunswick.Alward has been a member of the Legislative Assembly of New Brunswick since 1999 and has been the leader of the Progressive Conservative Party of New Brunswick since 2008...
, 32nd Premier of New Brunswick
Former Nackawic mayors
Byron MeredithRobert Simpson
David MacLean
Stephen Hawkes
Craig Melanson
Robert Connors
Current Council
Mayor Rowena SimpsonRowena Simpson
Rowena E. Simpson is the seventh and current mayor of Nackawic, New Brunswick, Canada. She was elected in May, 2008, as the first woman mayor in the history of the town.She was born in Hartfield, New Brunswick, on March 20, 1946....
Coun. Peter Seymour
Deputy Mayor Jacques Laroche
Coun. Brian Grant
Coun. Jamie Young
Coun. Jennifer Lamey
Statistics
- Population (town only) -- 977 (2006)
- Land Mass -- 8.45 km²
- Population density -- 123.3 people/km²
- Pop surrounding area App. 7000
- Language usage -- 90% English
- Ratio male/female -- 50/50
- % of population under 19 -- 27%
- % pop 20-54 -- 48%
- % pop 54-65 -- 15%
- % pop +65 -- 10%
- Total Private Dwellings -- 426
- Average family income -- $65,982.00