GreenFirst Forest Products announced plans to spin-off its Kap Corporation subsidiary (Kap) in the fourth quarter of 2024.
Shareholders will vote on the proposal at a meeting scheduled for September 12th.
The spin-out will allow GreenFirst to streamline its operations, focusing exclusively on lumber production. Kap, on the other hand, will gain independence to explore new ventures, including the development of green energy solutions.
"This strategic move enables us to fully concentrate on our core business," said GreenFirst CEO Joel Fournier, acknowledging the importance of Kap Paper as a consumer of residual wood from GreenFirst's sawmills.
Kap Paper, the operational arm under Kap, holds a unique position as the only chip consumer in Northeastern Ontario. The spin-out opens doors for Kap Paper to contribute to the green economy through initiatives leveraging sawmill residuals and forest biomass.
GreenFirst Forest Products is a Canadian company focused on sustainable forest management and lumber production. With four sawmills in Ontario and over 6.1 million hectares of FSC® certified forestlands, the company prioritizes responsible practices. GreenFirst believes its approach, combined with lumber's environmental benefits, offers significant advantages in the building products industry while maintaining a commitment to employee well-being and environmental leadership.
