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Northern Ontario officials call on feds, province to stop Kap Paper mill closure

Published Oct 1, 2025 at 7:18pm

The Canadian Press
By
The Canadian Press
Northern Ontario officials call on feds, province to stop Kap Paper mill closure

The logo of Kap Paper is shown. THE CANADIAN PRESS/Handout - Kap Paper (Mandatory Credit) SDV

Officials and residents of a northern Ontario community gathered Wednesday to call on provincial and federal governments to work with the town to keep a paper mill from closing, urging them to "not point fingers at each other."

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. The company said Monday 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.

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