Twin Rivers Paper Company is investing $2.5 million in its Plaster Rock sawmill, creating about 50 jobs in the northwestern village.

It's a direct result of the province's new forestry strategy, said Jean-Pierre Grenon, vice-president of forestry and sawmill operations, who made the announcement on Thursday.

Under the new plan, announced earlier this month, the mill will get more Crown wood, which puts the company in a "strong position to create and sustain jobs," said Grenon.

"The strategy provides clarity and a path forward to make investments now and in the future," he said.

The company plans to add a third production shift to its operations by May, resulting in 50 new jobs at the mill, which currently employs 180 people.

Twin Rivers Paper Company in Plaster Rock

The Twin Rivers Paper Company mill in Plaster Rock, which already employs 180 people, plans to add 50 new jobs by May. (CBC)

There will also be about 80 spinoff jobs created in woodlands and trucking, said Grenon.

Environmental groups and New Brunswick opposition parties have been critical of the new forestry plan, which will allow industry to cut about 20 per cent more softwood from Crown land.

But Mayor Alexis Fenner is pleased about what it means for her community.

"Fifty jobs in a village of eleven hundred and a few is like 500 jobs in Saint John, or 500 jobs in Fredericton," she said.

Job-seeker Dale Paget also welcomed the news from the village's main employer.

"I've been trying to get on there for a few years now and this is going to be as good a chance as a person has right now," he said.

Premier David Alward said a local tradesman told him the changes have enabled him to come home.

Alward quoted the man as saying, "I've been travelling for seven-and-a-half years, and this means long-term stability for the mill, and I can retire here."