Kapuskasing-Newsprint paper mill to resume operations after securing government funding

The Kapuskasing paper mill is resuming operations, after securing funding from the federal and provincial governments.

At the end of September, Kap Paper announced it would start the idling process because it no longer had the money to keep running without more government support.

Most of the 350 mill workers were sent home, while about 2,500 forestry workers in the area also faced possible layoffs.

On Friday, Minister of Jobs and Families, Patty Hajdu announced the federal government is giving Kap Paper a $10 million conditional repayable loan through FedNor’s Northern Ontario Development Program. It’s also giving an additional $2 million conditional repayable contribution through the Regional Economic Growth through Innovation Program.

Additionally, the Ontario government said Friday it is providing the company a $16.8 million dollar loan to support its continued operation. That money is on top of a $10 million provincial loan Kap Paper received in January 2025.

Kapuskasing paper mill to resume operations after securing government funding | CBC News

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