The Government of Canada has announced a $10 million investment to support Kap Paper and safeguard over 2,000 jobs in Kapuskasing and surrounding communities in Northeastern Ontario. The funding, delivered through the Federal Economic Development Agency for Northern Ontario (FedNor), will help the company adapt to changing market conditions in the forestry industry, maintain operations, explore new production opportunities, and carry out business planning and development work.
This investment is part of Canada’s broader efforts to support local industries facing economic uncertainty due to global trade shifts. Programs such as the Strategic Response Fund, the Regional Tariff Response Initiative, and the Workforce Alliances and Sectoral Workforce Innovation Fund aim to help businesses adapt, diversify, and grow while strengthening workforce development across the country. The funding will also bolster the regional forestry industry, ensuring long-term economic stability and resilience.
Government officials emphasized the importance of protecting jobs and supporting workers in Northern Ontario. Minister of Jobs and Families Patty Hajdu highlighted the investment as a way to empower businesses like Kap Paper to prosper, while Parliamentary Secretary Pauline Rochefort noted that the funding will restore operations and secure hundreds of direct and thousands of indirect jobs. Members of Parliament Viviane Lapointe and Terry Skiffington, CEO of Kap Paper, also praised the investment for reinforcing the forestry sector and helping the company adapt to present-day challenges.
Through this support, the Canadian government aims to future-proof Northern Ontario’s forestry sector, enhance domestic production, and open access to new markets, ensuring that businesses and communities remain strong amid global trade uncertainties. The funding underscores Canada’s commitment to regional economic growth, industrial resilience, and workforce development.
