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Northern Ont. paper mill announces plans to close
Kap Paper suspends operations after failing to secure federal rescue funding despite $50 million in provincial loans, affecting 420 direct jobs and 2,500 supply chain workers.
- On Sept. 29, 2025, Kap Paper began an orderly idling of its Kapuskasing mill after failing to secure a multimillion-dollar rescue package from Ottawa despite $50-million in loans from the Ontario government.
- Independent industry trackers project North American newsprint demand will drop about 15–20% in 2025, while Canada's forest sector GDP contribution fell 22% in 2023, highlighting volatile revenues for mills.
- NOMA warned the idling will ripple beyond Kapuskasing into Hearst and other northern communities, affecting 2,500 workers and 2,500 indirect jobs, according to Kap Paper CEO Terry Skiffington.
- Ontario Natural Resources Minister Mike Harris and Associate Minister of Forestry and Forest Products Kevin Holland said the province has repeatedly `stepped up` but cannot indefinitely shoulder operating support without federal participation and is ready to help affected workers through Ontario's re-employment and training programs.
- The province urged Kap Paper to appeal to Ottawa's Strategic Response Fund, but Kap says timing `doesn't appear to be aligning`; Kap Paper idled operations as Algoma Steel Group Inc. received separate funding.
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17 Articles
17 Articles
Global News+2 Reposted by 2 other sources
Ottawa says it will ‘keep working’ with Ontario paper mill to resume its operations
Ottawa says it will keep working to help save a northern Ontario paper mill that cited a lack of immediate support as it announced this week it was forced to idle operations.
·Toronto, Canada
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Winnipeg Free Press+6 Reposted by 6 other sources
Northern Ontario paper mill to idle operations, citing lack of financial support
Breaking News, Sports, Manitoba, Canada
·Winnipeg, Canada
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Déclaration concernant l’arrêt des opérations à l’usine de papier de Kapuskasing – Wawa-news.com
Aujourd’hui, Mike Harris, ministre des Richesses naturelles, et Kevin Holland, ministre associé des Forêts et des Produits forestiers, ont publié la déclaration suivante : « Notre gouvernement a travaillé en étroite collaboration avec Kap Paper dans le but de protéger les emplois à l’usine de papier de Kapuskasing. Il a consenti plus de 50 millions ...
Coverage Details
Total News Sources17
Leaning Left6Leaning Right0Center4Last UpdatedBias Distribution60% Left
Bias Distribution
- 60% of the sources lean Left
60% Left
L 60%
C 40%
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