The pulp and paper mill in Kapuskasing, Ontario, is facing the prospect of closure within two weeks, according to a letter sent to the federal government by the Federation of Northern Ontario Municipalities (FONOM) and the Northwestern Ontario Municipal Association (NOMA).
Both organizations are urging Ottawa to provide direct financial support through the Canada Mortgage and Housing Corporation (CMHC) and to address tariff pressures that are weighing heavily on Canadian producers.
The potential shutdown has raised significant concern in Kapuskasing, where the mill is a cornerstone of the local economy and a major employer. In nearby communities, the news has also revived memories of previous mill closures that had severe consequences for jobs and regional stability.
Kap Paper is a pulp and paper mill located in Kapuskasing, Ontario. With a long industrial tradition in Northern Ontario, it plays a major role in the regional economy by providing both direct and indirect employment. The facility is regarded as a pillar of the community and an essential link in the forest industry supply chain.
