ATIKOKAN, Ontario — Sawmills near Atikokan and Ignace will temporarily shut down over the Christmas holidays. United Steelworkers Local 1-2010 president Jacques Jean confirmed to Newswatch both facilities will pause operations for just over two weeks starting Dec. 19, with a scheduled re-start on Jan 5, 2026. He said it’s an unusual move — particularly for the facility in Sapawe, located about 30 kilometres east of Atikokan. The Ignace sawmill saw a month-long shutdown last Christmas, along with a halving of its operating hours as of Nov. 25, 2024. Domtar, which owns both sawmills, hasn’t responded to a request for comment from Newswatch. In Atikokan, Mayor Rob Ferguson said he was informed by mill management in mid-October about the planned idling, saying the company is taking some of their inventory “out of the market.” …“All the forest industry is so intertwined – it’s such a circular economy that when one group goes down, it affects everybody else,” said Ferguson.
Kapuskasing Mayor Dave Plourde says after receiving good news on Friday, Kap Paper is slowly getting up and running again. Plourde said the facility was idle for about six weeks after the board ran out of funds to pay employees. Now the community is relieved that the federal and provincial governments have stepped up with close to $29 million to get around 300 people back on the payroll. Plourde said work is underway to plan for the operation’s future. “We started yesterday on the commencement of that,” he said. “It had already been in the works prior to that, but we’re having regular updates and we’re going to make sure that we have something in front of government very soon.” Plourde, who is also chair of the Federation of Northern Ontario Municipalities, said the support is appreciated, but overall, northern Ontario’s forestry sector requires urgent and coordinated action to ensure long-term stability.
THUNDER BAY – Ontario’s MPPs are officially back at Queen’s Park for a new sitting of the provincial legislature, after breaking for the summer and forestry was top of mind for the region’s leaders. Opposition member Sol Mamakwa, MPP for Kiiwetinoong, questioned the Ford government on how they plan to help 160 unionized workers affected by the shutdown at the sawmill in Ear Falls. “Our government is disappointed of the news coming from Ear Falls. Immediately following the announcement of the mill, the premier and I reached out to company officials and Mayor (Kevin) Kahoot offering support for the workers and the community,” Associate Minister of Forestry and Forest Products Kevin Holland said. …The tariff hike contributed to ongoing market challenges in the sector forcing Interforb to suspend operations at the sawmill indefinitely.
Friday was a good news, bad news day for Northern Ontario’s forest products sector. Folks in Kapukasing are breathing easier…the federal and provincial governments announced they’re contributing a total investment of $28.8 million to sustain the Kapuskasing paper mill for the short term. Broken down, the province is spending $16.8 million, while the feds are chipping in $12 million. …However, forestry’s shaky conditions have put another community in peril [with] Interfor indefinitely shutting down its Ear Falls sawmill. …Unifor is calling for immediate action involving all levels of government to develop an industrial strategy for the forestry sector… The Northwestern Ontario Municipal Association and the Federation of Northern Ontario Municipalities issued a joint statement that “urgent and coordinated action is required to ensure long-term stability across Northern Ontario’s forestry and resource sectors.” The best outcome, the group said, is for government to strike a long-term trade deal with the U.S. to ensure economic and employment stability.
Linda Bell says there has been turmoil and chaos along parts of the US and New Brunswick border as trucks carrying lumber navigate the new tariffs that came into effect on Tuesday. But Bell says there’s been confusion as to what’s included under the new tariffs. In her almost three decades working as the general manager of the Carleton Victoria Wood Producers Association in Florenceville, she says it’s the first time there appears to be a duty on roundwood. “Trucks that were headed over there have been turned back and had to be unloaded. Some have been allowed to cross. We really don’t know what is going on,” she said. She said a few large mills in Maine who’ve been buying New Brunswick wood for five decades have halted all deliveries until the confusion can be cleared up. …Minister Mélanie Joly said there are different interpretations happening at various border locations.
ONTARIO — Upper levels of government have reached funding agreements to support the Town of Kapuskasing’s Paper Mill, averting a planned closure and providing what local leaders are calling “a critical step” toward securing the region’s economic future. Kap Paper announced the newfound support in a social media post on Friday evening. “Next week, we’ll be working out the details for a restart plan,” the post said, adding that updates would be shared “as soon as everything is confirmed.” Kapuskasing Mayor Dave Plourde, called the deal a “critical step forward for Kapuskasing and the entire region,” in a statement posted to the town’s social media page. …“We now have a second chance – a window of opportunity to come together, calmly and deliberately, to build a plan for modernization and long-term competitiveness,” said Plourde …“Today, I am pleased to confirm that both the federal and provincial governments have agreed to provide support.”
Companies reliant on New Brunswick’s softwood lumber industry are bracing for hard times after US President Trump announced new tariffs on Sept. 30. …In a letter to Prime Minister Mark Carney, New Brunswick Premier Susan Holt pleaded for the federal government to make softwood lumber tariffs a top priority. “In some communities in New Brunswick, one in every 11 workers depends directly on forest products,” Holt wrote. …Ron Marcolin, the New Brunswick vice-president with Canadian Manufacturers and Exporters, said the latest tariffs and duties are a big deal in a long-running drama over softwood lumber. …While New Brunswick may largely rely on the American market, Marcolin said Americans also rely on New Brunswick’s products. …”The thing is, too, they realize their product is inferior. Their softwood lumber is not as good as a Canadian stick of lumber.”
HUNTSVILLE — The Ontario government is investing $10 million through the Forest Sector Investment and Innovation Program to help Daiken North America upgrade its laminated board production line at its manufacturing facility in Huntsville. This investment will help the company bring a first-of-its-kind wood panel product to market, create jobs and boost productivity. As part of its plan to protect Ontario, the government is making strategic investments to help forest sector businesses adapt, compete and grow to stay resilient in the face of U.S. tariffs. …Daiken’s $70 million project will equip them to manufacture a new type of wood panel used in flooring, recreational vehicles and modular housing, while supporting 128 existing jobs and creating 10 new jobs. This made-in-Ontario forest product is the first of its kind in the world, offering a higher-performance, lower-cost alternative to imported material. 
Atlantic Canada’s wildfires are growing and a scientist at the University of New Brunswick (UNB) says the combination of climate change and regional forest management are making things worse. Anthony Taylor is a forestry expert at the UNB. He studies the impact of climate change and forest composition. “We should expect more weather like this into the future,” Taylor said. “That’s largely a consequence of inaction on climate change over the past 20 or 30 years.” Taylor said the weather and drought conditions in the Maritimes can be blamed on the climate change already baked into the system and people should expect more warming in coming decades. He said weather impacts wildfires more than any other variable but the next biggest factor is ignition. “More than 90 per cent of our fires that do occur, including this year, are from human ignition,” Taylor said. “Obviously we want to try to reduce and stop climate change but the next best thing after that is to be fire smart around the woods.”
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The man charged after an investigation into the largest wildfire in Nova Scotia history has been fined $25,000. Dalton Stewart, 23, chose not to speak when he was handed the sentence Thursday in Barrington provincial court. The sentence — a joint recommendation from the Crown and defence — also includes an order to complete educational training on wildfire prevention. 
ONTARIO — The Northwestern Ontario Innovation Centre has partnered with the Thunder Bay Community Economic Development Commission (CEDC), the Centre for Research and Innovation in the Bio-Economy (CRIBE), Lakehead University and Confederation College to launch the Boreal Springboard, an innovative initiative aimed at strengthening and diversifying the forestry sector in Northwestern Ontario. Graham Bracken, at the Northwestern Ontario Innovation Centre, said the launch comes at a critical time for forestry in the region. …“The trade pressures were really the impetus to focus people’s minds,” Bracken said. “The sector is really integrated, and any threat to protection on the sawmill side weakens the rest of the sector. There’s a real drive to look to trade diversification and try and develop new value-added products that we can access other markets with.” Bracken says these investors will bring skills, technologies, and solutions that can be adapted to strengthen and grow the sector.
THUNDER BAY — A number of stakeholders, largely from the forestry and energy sectors, got to provide regional input into a series of ongoing cross-province talks about energy policy. The Vaughn and Thunder Bay Chambers of Commerce held a roundtable discussion in the city on Oct. 2. The goal was for regional interests to provide requested input into an issues paper on energy being developed by the Toronto-based business lobby. …In Northwestern Ontario, she said, that includes longstanding sources like hydroelectricity and natural gas, but also continually-emerging opportunities connected to forestry and biomass. “We also talked a lot about the opportunities through the forest sector and biomass and the many things that can be created by harnessing forest products into energy,” Robinson said. “I think the most important thing was talking about how, from a forestry perspective, it really does check all the boxes.”
NOVA SCOTIA — Unseasonably warm temperatures proved challenging Monday as the fight against an out-of-control wildfire in Nova Scotia’s Annapolis Valley entered its second week. The Department of Natural Resources estimated that the fire at Lake George had grown slightly in 24 hours to just over 2.8 square kilometres, mainly because of dry and windy conditions. Monday’s forecast for the area near Aylesford, N.S., called for a high of 28 C — the average daily high in the region for October is normally below 15 C. “I can’t believe it — in October we normally get frost and cold,” Dave Corkum, mayor of the Municipality of the County of Kings, said in an interview. “There is some rain in the forecast in a few days and hopefully we will get it.” Despite the conditions, Corkum said there are no reports of damage to structures in the area.