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Kap Paper Canada Announces Plant Closure in Ontario Due to Lack of Federal Financial Support
The paper company, operating in Kapuskasing, reported that it was unable to secure immediate financial backing from the federal government, putting hundreds of jobs in the region at risk
Kap Paper, a company dedicated to paper production in northern Ontario, announced that it will begin shutting down operations after failing to obtain immediate financial support from the federal government of Canada. Although the company received $50 million in loans from the provincial government, this aid only provided short-term stability.
Kap Paper CEO Terry Skiffington described the situation as “heartbreaking” for the plant’s employees and the local community. He noted that, despite productive discussions with both levels of government, no immediate support was secured to keep the plant operational.
The company directly employs around 420 people, and approximately 2,500 jobs in the region depend on its operations. The Ontario government expressed disappointment over the lack of federal participation, despite the funds already provided to cover operational costs. In a joint statement, Minister of Natural Resources Mike Harris and Associate Minister of Forestry Kevin Holland emphasized the need for Ottawa to act as an “equal partner” in protecting Canadian forestry jobs and treating Ontario workers fairly.
The province assured that it will continue supporting affected workers through training and reemployment programs, in coordination with Kap Paper, local unions, and municipal authorities.
