Province Seeks Federal Aid to Prevent Kap Paper Mill Closure

SEATTLE (Scrap Monster): The Federation of Northern Ontario Municipalities (FONOM) has sought urgent financial assistance from the federal government to prevent the Kap Paper Mill in Kapuskasing from closure. If the mill fails to secure required funding, the paper mill is likely to shut its operations within two weeks.

ALSO READ:

Georgia Paper Mill Closures Leave Communities Reeling

Paper Mill, Kalamazoo Residents Settled Lawsuit over Dust and Odor

According to Kapuskasing Mayor Dave Plourde, the mill has witnessed a roller coaster ride over the past year. An urgent intervention from the federal government is essential to secure nearly regional 2,500 jobs. He urged the federal officials to find a long-lasting solution to the crisis.

The mill was originally scheduled to close on 10 September, 2025. However, this was averted following extension to a $6 million loan by the Province on Ontario. FONOM President Danny Whalen noted that a support from the federal government to the province’s forestry sector is long overdue.

The closure of the Kap Paper Mill would have serious implications, as the mill happens to be the major consumer of wood by-products, such as chips and sawdust from the region’s sawmills. A lack of demand for their products would result in closure of these sawmills as well. Thus, the closure is feared to cripple the entire local forestry sector.