Ontario’s forestry sector faces another setback as GreenFirst Forest Products prepares to scale back sawmill operations in Kapuskasing, Hearst, and Cochrane.
The company confirmed that starting October 6, 2025, sawmill activity will be reduced for at least one week, affecting about 140 employees. Kiln and planer operations will continue, but the Kapuskasing sawmill may see a longer slowdown due to its location and added logistical challenges.
The decision comes on the heels of Kap Paper’s announcement to idle its Kapuskasing paper mill, GreenFirst’s main customer for wood by-products. Without that outlet, sawmills are left with mounting volumes of chips and biomass that cannot be absorbed by Ontario’s two remaining pulp and paper mills in the west of the province.
A sector under strain
The curtailment highlights the ripple effects of multiple mill closures in Ontario — four in the past two years — and the difficulties sawmills face in finding markets for their by-products. At the same time, the lumber trade continues to be squeezed by high U.S. tariffs, weak markets, and persistently low prices.
“These are tough times for the industry,” said Joël Fournier, CEO of GreenFirst. “We are doing everything possible to protect our operations, support our employees, and work with governments to find viable solutions.”
What it means for northern communities
For towns like Kapuskasing, Hearst, and Cochrane, the temporary curtailment adds another layer of uncertainty in regions heavily dependent on forestry. While the company has stressed the measure is temporary, it acknowledged the situation will be reassessed as market and supply conditions evolve.
GreenFirst Forest Products is a forest-first company focused on sustainable forest management and lumber production. The company owns and operates four sawmills in Ontario and manages more than 6.1 million hectares of FSC®-certified public forestlands (FSC®-C167905).
