Wawa-news.com You can't hear the 'big picture'!
The Federation of Northern Ontario Municipalities (FONOM) is calling on both the Government of Ontario and the Government of Canada to take immediate, coordinated action following Kap Paper’s announcement that it will begin an orderly idling of operations at its Kapuskasing facility.
The decision to idle the mill, despite years of engagement with governments and partners, reflects the absence of near-term measures required to sustain the integrated forestry supply chain in Northeastern Ontario. The impacts of closure would ripple far beyond Kapuskasing, affecting families, workers, Indigenous partners, suppliers, and communities across the North.
“This is a devastating moment for Northeastern Ontario,” said Danny Whalen, President of FONOM. “The Kap Paper mill is an anchor for our region’s economy. Without urgent and coordinated intervention from both levels of government, we risk losing hundreds of jobs, destabilizing communities, and undermining Ontario’s forestry sector. We are urging the Prime Minister and Premier to come together today—not weeks from now—to deliver emergency support and keep Kap Paper operating.”
FONOM acknowledges the Province of Ontario’s past support, including $50 million in loans that helped stabilize operations and protect 2,500 jobs. However, without immediate operational support to bridge the gap while federal measures come into place, Northeastern Ontario faces the collapse of a critical industry that contributes over $300 million annually to governments and suppliers, including $74 million directly to Ontario.
The stakes are clear:
- Local economies – Municipal tax bases and regional businesses will suffer immediate and lasting damage.
- Integrated supply chains – Mills in Hearst and beyond depend on Kap Paper to receive and process wood residue.
- Public safety – Without the mill, unmanaged wood chips and by-products increase the risk of costly wildfires and environmental hazards.
- Provincial impact – 30% of ONTC’s revenue depends on Kap Paper and its partner sawmills.
FONOM stands with Mayor Dave Plourde, Kapuskasing Council, and Northern communities in demanding urgent action. Both levels of government must deliver a coordinated response that protects families, sustains jobs, and secures the long-term stability of the forestry sector that is vital to Ontario’s and Canada’s economic future.
The Federation of Northern Ontario Municipalities (FONOM) is the unified voice of Northeastern Ontario, representing and advocating on behalf of 110 cities, towns and municipalities. Our mission is to improve the economic and social quality of life for all Northerners and to ensure the future of our youth.
- Letter – Guy Bourgouin Writes Premier Ford about Kap Paper Mill - September 29, 2025
- NOMA Urges Immediate Action to Keep Kap Paper Operating - September 29, 2025
- FONOM Urges Immediate Action to Keep Kap Paper Operating - September 29, 2025
