What action has Ottawa promised regarding the Kap Paper Mill?

The federal government has pledged to continue working with Ontario and Kap Paper Mill to prevent closure and support the resumption of operations.

Has the federal government approved any aid yet?

No, despite initial positive responses, federal aid has not yet been approved.

What risks does the mill face without federal aid?

Without additional support, the mill could shut down, leading to job losses and economic impact on the Kapuskasing community.

Ottawa Promises to Help Save Northern Ontario Paper Mill from Closure

Paper Recycling | 2025-10-01 12:06:12

Also, Kap Paper said that it received a loan of $50 million from the provincial government.

By Paul Ploumis

Ottawa Promises to Help Save Northern Ontario Paper Mill from Closure

Summary

Federal Support Pledged – Ottawa has committed to working with Ontario and Kap Paper Mill to prevent closure and help resume operations, citing collaboration through the Strategic Innovation Fund.
Provincial Loan & Financial Needs – The Province of Ontario provided a $50 million loan, but the mill still requires additional federal support to remain operational.
Community Impact & Timeline – Closure would affect workers, families, and Kapuskasing town; an initial September 10, 2025 closure was averted through a provincial loan extension.

SEATTLE (Scrap Monster): Ottawa promised to keep working with Ontario paper mill so as to save it from closure and resume operations.

In order to keep the Kap Paper Mill in Kapuskasing from closing, the Federation of Northern Ontario Municipalities (FONOM) had already asked the federal government for immediate financial help. It stated that the mill would have to shut down if the necessary funds could not be obtained.

Additionally, Kap Paper reported that the province government had given it a $50 million loan. It had applied for support from the federal government. However, despite the initial good reactions, no aid has been approved as of yet.

Georgia Paper Mill Closures Leave Communties Reeling

Citing assistance provided through the Strategic Innovation Fund and specific initiatives, the office of Industry Minister Melanie Joly stated that the federal government has been collaborating closely with the faltering business.

The workers, their families, and the entire Kapuskasing town would suffer if Kap Paper were to close, according to a statement released by the Minister's office. In order to avoid a closure, it asked the provincial administration to continue working in tandem with the federal authorities.

The initial plan was for the mill to close on September 10, 2025. But after receiving a loan extension from the Province of Ontario, this was avoided.

POLL

How much do changes in market demand for paper products contribute to closures?

Major factor

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Frequently Asked Questions

What action has Ottawa promised regarding the Kap Paper Mill?
The federal government has pledged to continue working with Ontario and Kap Paper Mill to prevent closure and support the resumption of operations.
Has the federal government approved any aid yet?
No, despite initial positive responses, federal aid has not yet been approved.
What risks does the mill face without federal aid?
Without additional support, the mill could shut down, leading to job losses and economic impact on the Kapuskasing community.