Ont. government announces $16.8M investment in Kapuskasing Paper Mill

KAPUSKASING — The Ontario government announced that it is investing an additional $16.8 million to support the continued operation of the Kapuskasing Paper Mill, trying to protect nearly 300 forestry jobs at the mill along with the regional forestry sector. The Ontario government stated that it is making this support available following weeks of provincially-initiated joint discussions between the province, Kap Paper and the federal government, after which the federal government had agreed to come to the table with $12 million in new support as well.

“Our government has been at the table from day one, stepping up again and again to protect good-paying jobs in Kapuskasing and across Ontario’s forestry sector,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “We have been clear that Ontario cannot do this alone, and I want to thank the federal government for joining Ontario to help secure the future of Kap Paper, and the workers and northern communities that depend on it.”

In a press release, the Ontario government stated that the collaborative discussions with Kap Paper and the federal government focused on keeping the mill operational while exploring long-term solutions to stabilize the business and protect forestry jobs across northern Ontario. The collaborative funding approach announced is meant to reportedly stabilize the mill’s operations in the short term while the company continues its work to develop a long-term viable strategy.

“As the forestry sector faces growing uncertainty due to U.S. softwood lumber duties and tariffs, Ontario is continuing to do what it takes to protect these vital jobs in the North,” said Mike Harris, Minister of Natural Resources. “After weeks of strong advocacy and many discussions, we appreciate that the federal government has joined us in standing up for workers and families that depend on forestry jobs.”