The future of Kap Paper mill in Kapuskasing, Northern Ontario, is secured and the mill can resume operations following a combined $29 million financial aid package from the Canadian provincial and federal governments.
Kap Paper is a pulp and paper mill located in Kapuskasing, Ontario.
The new funding will sustain the Kapuskasing paper mill for the short term, and preserve some 300 mill jobs.
Kap Paper has previously called for immediate federal action “to stabilize Canada’s forestry supply chain—the backbone of the federal housing plan”. The company urged the Government of Canada to work with Ontario and industry on practical, near-term steps to keep the integrated system of pulp and paper mills, by-product markets, and sawmills intact, while protecting 2,500 jobs in Northeastern Ontario.
“Every mill job supports multiple others—in trucking, maintenance, contractors, and local services,” said Terry Skiffington, Kap Paper CEO, in a press release. “Stability in Ontario’s Northeast means stability for communities. It also means better climate outcomes: managed forests and healthy markets for biomass reduce wildfire fuel loads and the associated social and financial costs”.
According to Paper Advance, then new financing is structured as a joint investment, reflecting a coordinated commitment from both levels of government to stabilize Northern Ontario’s forestry sector.
