Province Providing Support to Kap Paper Inc. to Enhance Forest Sector Productivity

KAPUSKASING — The Ontario government is extending a $10 million loan to Kap Paper Inc., ensuring the protection of approximately 2,500 local jobs in Kapuskasing and surrounding areas, which depend on the company’s operations.

“Through this investment, we’re ensuring Ontario’s world-leading forest sector continues to provide prosperity for Northern communities,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “This loan fulfills our government’s commitment to supporting the forest sector’s success, securing jobs, and ensuring Kapuskasing’s productivity remains strong.”

Kap Paper Inc. plays a crucial role in both the local economy and Ontario’s broader forest sector. Three nearby sawmills rely on the company’s operations, as they depend on Kap Paper to utilize by-products from lumber production.

“Businesses like Kap Paper in Kapuskasing are vital contributors to Ontario’s economy, and their success helps drive regional growth,” said Graydon Smith, Minister of Natural Resources. “This support protects economic and social contributions while enhancing the entire forest sector in Ontario.”

The loan will assist Kap Paper in navigating challenging market conditions and ensure its continued operation.

Ontario’s government also encourages investments in the competitiveness and diversification of sawmills through programs like the Forest Sector Investment and Innovation Program and the Forest Biomass Program, which aim to enhance wood utilization and reduce regulatory burdens for businesses.

This initiative is a key part of Ontario’s Forest Sector Strategy, which focuses on fostering economic growth and supporting Indigenous, Northern, and rural communities vital to the forest sector’s success.

Quick Facts

  • Around 2,500 jobs in Kapuskasing and its surrounding areas are linked to Kap Paper’s operation, with the company directly employing 300 people.
  • Ontario’s forest sector generated over $22 billion in revenue in 2022 and provided more than 137,000 jobs in 2023, many of which are in Indigenous, Northern, and rural communities.

Quotes

Greg Rickford, Minister of Northern Development and Minister of Indigenous Affairs and First Nations Economic Reconciliation
“By securing these 2,500 jobs, we are ensuring that families in the Kapuskasing region continue contributing to Ontario’s economic vitality. Kap Paper is a crucial part of Northern Ontario’s integrated supply chain, and our support will preserve both these jobs and the many businesses dependent on them.”

Terry Skiffington, CEO, Kapuskasing Paper Inc.
“Kap Paper is a key pulp and paper mill for Ontario, particularly in the Northeast. We are grateful for the continued collaboration with the Doug Ford government, especially Ministers Holland and Smith, the Town of Kapuskasing, and Mayor Plourde, as we work through tough market conditions. Our goal is to transform the mill into a super facility for pulp, paper, and energy, helping to support regional sawmills, utilize forest biomass, and contribute to Ontario’s green energy goals.”

Danny Whalen, Deputy Mayor, City of Temiskaming Shores and President, Federation of Northern Ontario Municipalities
“We’ve been in close communication with Minister Smith and Associate Minister Holland about the importance of the forestry sector for both northern regions of Ontario. We’re grateful that the ministry listened to our concerns and took action to support the people of northeastern Ontario.”

David Plourde, Mayor, Town of Kapuskasing
“This funding demonstrates the province’s strong commitment to supporting our workers and ensuring the long-term sustainability of our forest sector. The forestry industry is essential to Kapuskasing’s economy, and with this support, we can enhance productivity and explore new practices to ensure a resilient future for the North. We’re thankful for the province’s ongoing partnership and dedication to fostering prosperity in northern Ontario.”