Kap Paper to Idle Kapuskasing Mill Amid Lack of Immediate Federal Support

Kap Paper has announced plans to idle operations at its Kapuskasing paper mill in northern Ontario, impacting about 300 direct jobs and many more indirectly. The decision comes after months of efforts to secure immediate financial assistance from the federal government, which did not materialize in time despite Ontario’s $50 million loan support. CEO Terry Skiffington described the move as heartbreaking, citing extensive engagement with government partners that could only offer mid- to long-term support, insufficient to keep the mill running. The company plans an orderly wind-down to prioritize worker safety and environmental protection. Local leaders expressed deep concern over the economic loss for the community. Ontario’s government criticized the federal government for not matching provincial support and pledged aid for affected workers through job training and re-employment programs. The mill's closure represents a significant challenge for the northern Ontario forestry sector amid ongoing market pressures.