A paper mill in northern Ontario says it will begin winding down operations after failing to secure immediate financial support from the federal government.
Kap Paper says 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 Kapuskasing mill open.
Kap Paper CEO Terry Skiffington is calling the situation “heartbreaking” for the paper mill employees and the community.
The provincial government says it has provided Kap Paper with millions to help cover operating expenses and is “disappointed” that the federal government has failed to join in providing immediate support.
Ontario says it is ready to help affected workers through the province’s re-employment and training programs.
The Canadian Press has reached out to the federal government for comment.
This report by The Canadian Press was first published Sept. 29, 2025.
