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Ottawa says it can provide $12M loan to keep northern Ontario paper mill open
- The federal government said Friday that it will provide a $12 million repayable loan to Kap Paper in Kapuskasing, with Ontario contributing $16.8 million, totaling $28.8 million support.
- Mounting market pressures, including American tariffs, left Kap Paper in Kapuskasing facing closure as print circulation dropped 12 per cent from 2020 to 2022, Statistics Canada reported.
- The $12-million federal package comes from two FedNor programs, with a $10 million conditional repayable contribution and a $2 million conditional repayable contribution for planning and development.
- Phased restart plans will recall employees soon, preserving about 420 direct jobs and supporting 2,500 positions in the regional forestry sector at Kap Paper's Kapuskasing mill.
- Community leaders welcomed the funding and urged both governments to work together, with Patty Hajdu expecting Kap Paper to meet critical milestones and provide an update before the end of November.
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Full restart expected at Kap Paper
Relieved Kap Paper employees will begin to head back to work in Kapuskasing as soon as next week. Intensive collaboration between the Ontario and federal governments resulted in the agreement to provide operational support to Kap Paper, as the mill…
·Waterloo, Canada
Read Full ArticleOttawa Says It Can Provide $12M Loan to Keep Northern Ontario Paper Mill Open
The federal government says it can provide a $12-million loan to keep a northern Ontario paper mill from closing. Jobs Minister Patty Hajdu says in a letter to Kap Paper that the federal operating support would be an “exceptional” one-time measure. The company said late last month that it would have to idle operations at the Kapuskasing mill after failing to secure immediate financial support from Ottawa. The federal government has said that it …
·New York, United States
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Total News Sources22
Leaning Left10Leaning Right3Center5Last UpdatedBias Distribution55% Left
Bias Distribution
- 55% of the sources lean Left
55% Left
L 55%
C 28%
R 17%
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