Kapuskasing Mayor Reports Progress to Keep Kap Paper Open

URGENT UPDATE: Kap Paper Remains Open as Federal Talks Begin

Kapuskasing Mayor Dave Plourde confirmed today that Kap Paper will remain operational for now, following significant lobbying efforts that led the federal government to agree to discuss solutions for the northeastern forest industry. This development comes as the company battles a crisis exacerbated by tariffs stemming from the U.S.-China trade war initiated by former President Donald Trump.

Mayor Plourde stated, “We’re working hard day and night to ensure that closure does not happen.” His comments come after alarming news earlier this month when he revealed the company faced a potential shutdown without urgent federal financial assistance. The province has already stepped in with a $6 million loan extension to avert closure, which was initially set for September 10, 2023.

New Federal Initiatives Announced

Today’s announcement of a working group involving both federal and provincial governments is promising for the future of the forestry sector. Officials are optimistic about the discussions, which also include industry representatives.

In a related move, Ontario’s Associate Minister of Forestry and Forest Products, Kevin Holland, announced a new $30 million initiative aimed at enhancing forestry access roads and providing immediate support for Ontario sawmills to explore new markets for woodchips. Mayor Plourde described this funding as a “good start,” but emphasized, “It really doesn’t help if there’s no mill available here to receive chips.”

Government Commitment to Support

A statement from the ministry overseeing FedNor reaffirmed the government’s commitment to supporting the forestry industry: “To meet these challenges, we must build Canada strong and that starts right here at home.” The ministry underscored that mills are vital to northern Ontario’s economy, providing jobs and supporting families.

In a recent communications update, Kap Paper outlined specific ways the federal government could provide further assistance, including proportional funding for forestry in Ontario—comparable to British Columbia and Quebec—and the need to address tariffs that disadvantage Canadian producers.

What’s Next?

As discussions continue, Mayor Plourde is eagerly awaiting the province’s next steps. “I’m really looking forward to hearing more from the province on where we go from here,” he said. The situation remains fluid, and stakeholders are encouraged to stay informed as developments unfold.

With the forestry sector in a precarious position, the actions taken by both levels of government could have long-lasting impacts on the community of Kapuskasing and the surrounding region. The local economy hinges on the success of these negotiations, making it a pivotal moment for residents and workers alike.

Stay connected for the latest updates on this developing story.