Kapuskasing mill idled as federal funding fails to materialize

Kap Paper has idled operations at its Kapuskasing, Ontario, mill this week after the company said it could not secure immediate federal funding to keep the facility running, a move that places roughly 420 direct jobs and an estimated 2,500 regional positions tied to the mill at risk. The company and provincial officials said Ottawa had been asked to provide financial assistance but did not offer an immediate solution.

Kap Paper said it had received 50 million Canadian dollars in loans from the Ontario government and additional provincial support intended to cover operating expenses. The company approached the federal government for funding after receiving the provincial assistance, but said despite initially positive responses, federal aid sufficient to prevent idling did not materialize in time.

The federal Industry Minister’s office said Ottawa had engaged directly with the company and put federal supports on the table, including assistance through the Strategic Innovation Fund and other targeted programs. The office added it would continue to work with Kap Paper on options to resume operations and urged the provincial government to remain coordinated with federal efforts. In...