KAPUSKASING, ON — The Ontario government says it has provided more than $50 million in support to help sustain the Kapuskasing Paper Mill, but despite these efforts, Kap Paper has determined there is no viable path forward without continuous large-scale financial assistance.
Natural Resources Minister Mike Harris and Associate Minister of Forestry and Forest Products Kevin Holland issued a joint statement Friday expressing disappointment in the federal government for not matching Ontario’s contributions, warning that forestry workers in Northern Ontario are being left without critical backing.
“We have continuously pushed the federal government to come to the table as an equal partner,” the ministers stated. “Despite Ontario’s extensive support, Kap Paper has concluded there is no sustainable path to long-term viability without continuous significant financial assistance.”
Support for Workers and Communities
The province said it is prioritizing assistance for impacted workers and families, activating Rapid Re-employment and Training Service (RRTS) supports and deploying a network of provincial programs to cushion the blow of the mill’s closure. Among these:
-
Protect Ontario Workers Employment Response (POWER) Centres – $20 million in 2025 to provide laid-off workers with job search help, counselling, financial advice, and referrals to local training and Employment Ontario programs.
-
Better Jobs Ontario (BJO) – Expanded with an additional $50 million, offering retraining support including tuition, living expenses, childcare, and disability supports.
-
Skills Development Fund (SDF) – $2.5 billion commitment provincewide, with over $131 million already invested in Northern Ontario for training in trades, manufacturing, and forestry.
-
Employment Standards and Income Supports – Workers may qualify for termination and severance pay, Employment Insurance, and Ontario Works for those facing financial hardship.
-
Employment Ontario – Delivered locally by Collège Boréal to provide job search assistance and retraining.
-
Trade Impacted Communities Program – $40 million to support municipalities and businesses navigating U.S. trade disruptions.
Provincial Investments in Forestry
Ontario highlighted a broad suite of initiatives aimed at strengthening the forestry sector in the face of U.S. tariffs and rising softwood lumber duties, including:
-
$10 million to help sawmills adapt to global market changes.
-
$72 million through the Forest Sector Investment and Innovation Program.
-
Nearly $50 million through the Forest Biomass Program.
-
$20 million this year through the Forest Access Roads Funding Program, bringing total annual funding to $79 million.
-
Close to $3 million for wood-based construction research and training.
-
Over $1.5 million toward mass timber construction projects at George Brown College and the University of Toronto.
-
Over $750,000 to support FPInnovations’ wood material testing and research.
-
Over $300,000 to the Mass Timber Institute to advance modular housing and sustainable wood use.
-
Almost $35 million in electricity rate relief to forestry businesses through the Northern Energy Advantage Program.
Federal Action Urged
Despite these measures, Ontario ministers insist that without federal financial support, the long-term future of Kap Paper — and the broader forestry industry — remains at risk.
“Ontario continues to step up with significant provincial support but cannot do so alone,” Harris and Holland emphasized. “We will continue to advocate for the federal government to support forestry workers and businesses in this vital sector.”
The Kapuskasing Paper Mill has been a cornerstone of the region’s economy for generations, and while the closure will be a significant blow to the community, Ontario officials say their focus remains on ensuring workers have access to retraining, income support, and pathways to new careers.
Follow GTA Weekly on social media for more local news and updates. #GTAWeekly #GTAToday
Leave a Reply