Northern Ontario officials call on feds, province to stop Kap Paper mill closure
Written by The Canadian Press on October 1, 2025
Local officials and residents of a northern Ontario community are gathering today to call on the provincial and federal governments to “not point fingers at each other” and work with the community to keep a paper mill from closing.
Earlier this week, Kap Paper in Kapuskasing announced it will begin winding down operations after failing to secure immediate financial support from the federal government.
Kap Paper says it received $50 million in loans from the Ontario government and had approached Ottawa for funding, but the timing “doesn’t appear to be aligning” for a solution to keep the mill open.
The company said it employs about 420 people directly and a total of 2,500 jobs in the region depend on its operation.
Kapuskasing Mayor Dave Plourde says the mill’s idling will hurt the local economy and they’re asking the province for a three-month loan to allow them to apply to the federal government for long-term funding.
Guy Bourgouin, member of provincial parliament for Mushkegowuk—James Bay, says Ottawa and the province must put politics aside and create a path forward for the community.
This report by The Canadian Press was first published Oct. 1, 2025.
The Canadian Press