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.
“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