Canada announces funding to support for Kap Paper in Northeast Ontario

By Innovation, Science and Economic Development Canada
Cision Newswire
January 31, 2026
Category: Business & Politics
Region: Canada, Canada East

ONTARIO – The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced that the Government of Canada is investing $7.5 million through the Strategic Response Fund (SRF) to help Kap Paper complete a Front End Engineering Design (FEED) study to support a pivot in its operations toward growth markets. The study will establish the key execution criteria necessary for a final investment decision on creating a new medium-density fibreboard (MDF) facility. This facility would keep Kap Paper operational, safeguard employment in Kapuskasing, Ontario, and strengthen the regional economy. …”This investment will help the company define its plan to manufacture higher-value products to diversify revenue streams, stabilize demand for fibre and maximize the economic output of harvested timber, ” said Joly.

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