Irving says it will spend $38M to modernize sawmills in N.B.

DOAKTOWN, N.B. -- J.D. Irving Ltd. says it will spend $38 million to modernize its sawmill production in New Brunswick.

The company says the money will fund a number of projects including the construction of a new sawmill in Doaktown and a new studwood production line in Chipman.

Jim Irving, the company's co-CEO, says the funds will help generate about 400 full-time and seasonal jobs.

The announcement comes a day after Irving Pulp and Paper said it plans to spend about $450 million to modernize a mill in Saint John.

Earlier this week, the provincial government lifted a cap on the amount of softwood it will make available to the forestry industry from Crown land.

New Brunswick's new 10-year forestry plan will allow companies to harvest an additional 660,000 cubic metres of softwood a year -- a hike of 20 per cent from existing levels.