CANADA – Arauco North America, a leading manufacturer of wooden panels, has announced that particleboard operations will end in St. Stephen, New Brunswick by the end of 2019.

“This was not an easy decision to make and is in no way reflective of the quality of local operations in St. Stephen. It is a decision based on the economics of our business and the changing nature of the industry,” said Kelly Shotbolt, Arauco North America. “We know this is difficult news for all of us, but we are committed to supporting our employees and their families during this transition.”

A number of factors influenced the decision to stop particleboard production in New Brunswick. These include high costs for natural gas and electricity, distance from market, and an overall lack of demand owing to increased competition from newer and larger facilities.

The Company will continue to manufacture Fibrex boards from this location. The decision will affect between 60 and 75 positions, although the final number will be known following the voluntary severance period.

Employees have three weeks to consider early retirements or voluntary departures from the mill.