NOMA Urges Immediate Action to Keep Kap Paper Operating

The Northwestern Ontario Municipal Association (NOMA) is calling on both the Government of Ontario and the Government of Canada to take immediate, coordinated action following the announcement that Kap Paper will begin an orderly idling of operations at its Kapuskasing facility.

The decision to wind down operations, despite years of engagement with governments and partners, reflects the absence of near-term measures needed to sustain the integrated forestry supply chain in Northeastern Ontario. The closure would have devastating consequences, not only for Kapuskasing but also for communities across the North, including Hearst—a proud NOMA member whose local mills depend on Kap Paper to process and receive their wood residue.

“This is a heartbreaking moment for Northern Ontario,” said Rick Dumas, President of NOMA. “Thousands of workers, families, and businesses depend on Kap Paper. We are urging the Prime Minister and the Premier to work together now—without delay—to deliver emergency support, keep the mill operating, and protect the integrated forestry supply chain that sustains our communities.”

NOMA acknowledged the Province of Ontario’s past support, including $50 million in loans that helped provide short-term stability and keep 2,500 workers employed. However, without immediate and coordinated measures from both levels of government, the region faces significant job losses, economic instability, and the collapse of a critical link in Canada’s forestry sector.

NOMA joins with local leaders in Kapuskasing and Hearst in calling on both governments to act swiftly to safeguard the future of Kap Paper, protect Northern families, and secure the stability of the forestry sector that is vital to Canada’s housing and infrastructure ambitions.

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