Ontario Protecting Jobs in Kapuskasing

January 27, 2025

Province providing support to Kap Paper Inc. to strengthen forest sector productivity

KAPUSKASING — The Ontario government is providing a $10 million loan to Kap Paper Inc., protecting approximately 2,500 jobs in Kapuskasing and the surrounding region which depend on the company’s ongoing operation.

“Our government is ensuring Ontario’s world-class forest sector continues to build prosperity for Northern workers, families and communities,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “This financial support delivers on our government’s commitment to forest sector success by protecting jobs and maintaining productivity in Kapuskasing.”

Kap Paper is a key employer for Kapuskasing and a vital part of Ontario’s forest sector supply chain. Operations at three nearby sawmills depend on Kap Paper to provide demand for mill by-products generated by lumber production.

“Hard-working people and businesses in communities like Kapuskasing provide goods we rely on everyday, driving growth that builds Ontario,” said Graydon Smith, Minister of Natural Resources. “We’re protecting those contributions to economic and social well-being and strengthening operations across Ontario’s highly integrated forest sector.”

The loan will support Kap Paper’s ongoing operation during challenging market conditions.

The Ontario government continues to encourage mill owners to invest in mill competitiveness and diversification. The government supports these investments through measures like the Forest Sector Investment and Innovation Program and the Forest Biomass Program – and through ongoing actions to increase wood use, reduce burdens for Ontario’s businesses and access new markets.

This financial support delivers on Ontario’s Forest Sector Strategy commitments to encourage economic growth in the forest sector and support the Indigenous, Northern and rural communities that drive forest sector success.

Quick Facts

• Approximately 2,500 jobs in Kapuskasing and the surrounding region depend on the company’s ongoing operation. The company directly employs 300 people.
• Ontario’s forest sector generated over $22 billion in revenue in 2022 and provided more than 137,000 jobs in 2023, many in Indigenous, Northern and rural communities.

Quotes

“By investing in the protection of 2,500 jobs, we are keeping these families in the Kapuskasing region, ensuring their continued contribution to Ontario’s economic strength. Kap Paper has an integral role in our Northern Ontario fully integrated supply chain. Our support will safeguard these vital jobs as well as the many other businesses that depend on their operations.”

– Greg Rickford

Minister of Northern Development and Minister of Indigenous Affairs and First Nations Economic Reconciliation

“Kap Paper is a cornerstone pulp and paper mill for Ontario, particularly the Northeast region. The company has been working tirelessly with the Doug Ford government, specifically Ministers Holland and Smith at the Ministry of Natural Resources, also with the Town of Kapuskasing and Mayor Plourde, and we are very grateful for this support as we manage through difficult market times. The goal for Kap Paper has been and remains to reposition the mill as a pulp, paper and energy super facility to support the regional sawmills, utilize available forest biomass, and support Ontario’s need for incremental green electricity. We are working very closely with the Ontario government to make this vision a reality in the near future.”
– Terry Skiffington
CEO, Kapuskasing Paper Inc.

“We at The Federation of Northern Ontario Municipalities have spoken with Minister Smith and Associate Minister Holland regarding the importance of the forestry sector to both northwestern and northeastern Ontario. We greatly appreciate that the ministry has heard our voice and acted to support the people of northeastern Ontario and assist in keeping our economies strong.”
– Danny Whalen
Deputy Mayor, City of Temiskaming Shores and President, Federation of Northern Ontario Municipalities

“After many meetings and working alongside Kap Paper Inc., this funding from the province demonstrates a strong commitment to protecting the livelihoods of our workers and ensuring the long-term sustainability of our forest sector. The forestry industry is at the heart of our region, driving economic growth and providing good-paying jobs for our residents. With this support, we can invest in innovative practices, enhance productivity, and build a more resilient future for the north. We are grateful for the province’s continued partnership and dedication to fostering prosperity in northern Ontario.”
– David Plourde
Mayor, Town of Kapuskasing

Additional Resources

• Forest Sector Investment and Innovation Program
• Forest Biomass Program
• Sustainable Growth: Ontario’s Forest Sector Strategy

Related Topics

Business and Economy

Information about Ontario’s economy and how to do business here. Includes economic development opportunities, research funding, tax credits for business and the Ontario Budget. Learn more

Jobs and Employment

We’ve got the resource and supports to help connect job seekers with employers. Learn more

Rural and North

Information about the province’s Far North and rural communities. Get connected to business improvement organizations and learn more about funding and programs that support rural, northern and Indigenous communities. Learn more

Media Contacts

Melissa Candelaria
Minister’s Office
647-448-7652
Melissa.Candelaria@ontario.ca

Media Relations
Communications Services Branch
MediaDesk.MNRF@ontario.ca

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