Signs of recovery are emerging in Northern Ontario’s forestry sector as GreenFirst Forest Products prepares to restart its sawmills in Kapuskasing, Hearst, and Cochrane next week, following encouraging progress toward stabilizing Kap Paper Inc.
The announcement marks a positive turn after weeks of uncertainty that began when Kap Paper, which operates the region’s only paper mill, announced in September an orderly idling of its operations due to a funding shortfall. That shutdown quickly rippled through the regional supply chain, prompting GreenFirst to temporarily curtail production at its nearby sawmills, which supply Kap Paper with wood chips.
Now, with active collaboration between the federal and Ontario governments, discussions to develop a restart plan for Kap Paper are reportedly moving forward. GreenFirst said the momentum provides “hope for workers, contractors, and communities across the region,” and that it is preparing to resume sawmill operations during the week of October 6.
“We thank both the Government of Canada and the Province of Ontario for their constructive engagement and support for the forestry sector,” said Joël Fournier, GreenFirst’s CEO. “This collaboration is essential to sustaining jobs, strengthening communities, and building a long-term future for the regional forest economy.”
While many details remain under discussion, the coordinated efforts suggest a path toward short-term stability for an interconnected regional industry that employs hundreds of people. Municipal leaders and local contractors have stressed that a restart of both GreenFirst’s and Kap Paper’s operations is vital to maintaining the viability of the Northeastern Ontario forestry hub.
GreenFirst confirmed that it will continue working closely with Kap Paper, local officials, and both levels of government as plans evolve to modernize and stabilize the regional supply chain.
The tentative restart is viewed by many as a critical step toward restoring confidence in a sector that has faced financial strain and operational disruptions but remains central to Northern Ontario’s economy.
GreenFirst Forest Products is a forest-first company focused on sustainable forest management and lumber production. It operates four sawmills across Ontario and manages more than 6.1 million hectares of FSC®-certified public forestlands (FSC®-C167905).
