This financial support, announced on January 27, 2025, aims to maintain the mill's operations during challenging market conditions and strengthen the forest sector's productivity.
Kap Paper, a key employer in Kapuskasing and a vital part of Ontario's forest sector supply chain, directly employs 300 people. The mill's continued operation is critical for three nearby sawmills that depend on it to consume their by-products generated during lumber production.
Terry Skiffington, CEO of Kap Paper, expressed gratitude for the government's support, stating that the company's goal is to reposition the mill as a "pulp, paper and energy super facility" to support regional sawmills, utilize forest biomass, and contribute to Ontario's green electricity needs.
The loan aligns with Ontario's Forest Sector Strategy, which aims to encourage economic growth in the forest sector and support Indigenous, Northern, and rural communities. Kevin Holland, Associate Minister of Forestry and Forest Products, emphasized the government's commitment to ensuring the success of Ontario's world-class forest sector.
This financial intervention comes at a critical time for Kap Paper, which has been facing operational challenges and a tough pricing environment for paper products. The support will allow the company to continue its regular operations while it develops its bioenergy facility, potentially opening new opportunities in green energy production.
The move has been welcomed by local leaders, including Kapuskasing Mayor David Plourde, who sees it as a crucial step in securing the long-term sustainability of both the company and the region.
Kap Paper operates a pulp and paper mill in Kapuskasing, Ontario, producing newsprint used by newspaper publishers and commercial printers. They also manufacture controlled bulk paper, which is used for mass-market paperback books and other commercial printing applications. The mill is a crucial part of the local economy.
Source:https://www.paperadvance.com/