Kap Paper Announces the Idling of Kapuskasing Mill

With deep regret, Kap Paper today announced it will begin an orderly idling of operations at its Kapuskasing facility. The decision follows months—and indeed years—of engagement with governments and partners and reflects the absence of near-term measures required to maintain the integrated forestry supply chain in Northeastern Ontario.

“This is a heartbreaking day for our people and the community,” said Terry Skiffington, CEO, Kap Paper. “We have done everything in our power to keep the mill operating. While we have had productive discussions with both levels of government, and mid to long term support could be available, it doesn’t appear that immediate support is available at this time.”

At the urging of the Province, Kap Paper approached the Government of Canada for a longer-term solution through the Strategic Response Fund. While we have initial positive responses, the timing doesn’t appear to be aligning for an immediate solution to keep the mill operational. Unfortunately Kap Paper does not have the resources to continue operations and are forced to idle our operations.

Kap Paper thanks the Province of Ontario for its support over the last two years. Ontario has provided $50 million in loans, which have provided short-term stability and kept 2,500 workers employed.