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7 October 2025
Kap Paper Mill Given Lifeline
KAPUSKASING, ONTARIO—
The provincial and federal governments have agreed "to a path forward that provides near-term stability for Kap Paper while partners continue work on a long-term solution," reads a news release. Details of the deal Kap Paper reached with the provincial, federal governments are not known yet. In Sept. 29, Kap Paper announced it was idling its operations at its Kapuskasing facility,with blame being put on upper levels of
government for not working together. The paper mill is a newsprint and bulk paper mill. The papermaker said the decision was made after years and months of discussion with governments and partners.The company said it employs about 420 people directly and a total of 2,500 jobs in the region depend on its operation. Kap Paper is the last consumer of chips and biomass in northeastern Ontario.
Kap Paper Mill in Kapuskasing, Ontario
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Announcements about paper mill shutdowns has become a regular occurrence in the last several years
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