Ontario invests $16.8 million to support Kapuskasing Paper Mill and protect 2,500 jobs
Friday, October 17, 2025 12:15 pm
CANADA (News release) -- The Ontario government is allocating $16.8 million to sustain operations at the Kapuskasing Paper Mill, securing nearly 300 mill jobs and supporting 2,500 direct and indirect forestry positions across northeastern Ontario. The provincial investment follows discussions with Kap Paper and the federal government, which has committed an additional $12 million, according to the Ministry of Natural Resources. Ontario initiated multi-level talks to address the company's financial challenges and the broader impact of U.S. softwood lumber tariffs on the regional forestry sector. The joint funding is intended to maintain current operations while the company works on long-term plans to modernize production and diversify its product line. The mill plays a central role in the local forestry supply chain, supporting sawmills and contributing significantly to the municipal economy. In 2023, Ontario's forest sector generated $21.6 billion in revenue and sustained 128,000 direct and indirect jobs in 2024. Additional provincial measures include $10 million to help sawmills compete globally, $72 million through the Forest Sector Investment and Innovation Program, and $50 million under the Forest Biomass Program to expand wood harvest and market applications. The province is also investing $20 million in forest access roads this year, contributing to a total of over $79 million. Ontario continues to promote the use of wood through close to $3 million in research and education programs and is providing over $25 million in electricity rate relief for forestry operations in 2024-25. These initiatives align with Ontario's Sustainable Growth: Forest Sector Strategy and Forest Biomass Action Plan.
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