Decisions ‘forthcoming’ to keep Kap Paper from closure

Northern Ontario Business
September 24, 2025
Category: Business & Politics
Region: Canada East

Struggling Kap Paper is looking for a lifeline from Ottawa to keep the Kapuskasing newsprint mill afloat and avoiding closure. The northwestern Ontario company has been threatening to shut down within a few short weeks unless the federal government comes forth with matching funds that equals the commitment by the Ontario government for a $6-million loan extension. The company is making a direct appeal, via a news release, to “act now” to keep its 300 workers employed and the pulp and paper supply chain in northeastern Ontario intact. …A spokesperson issued this statement on Wednesday: Kap Paper continues to work closely with the Governments of Canada and Ontario on long-term stability measures. Decisions on next steps are forthcoming, and we will provide a public update immediately once they are finalized. In the meantime, our focus remains on meeting commitments to our employees, customers, and community.

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