Deal reached to save northern Ont. paper mill from closure

Upper levels of government have reached funding agreements to support the Town of Kapuskasing’s Paper Mill, averting a planned closure and providing what local leaders are calling “a critical step” toward securing the region’s economic future.

Kap Paper announced the newfound support in a social media post on Friday evening.

“Next week, we’ll be working out the details for a restart plan,” the post said, adding that updates would be shared “as soon as everything is confirmed.”

Critical step forward

Kapuskasing Mayor Dave Plourde, called the deal a “critical step forward for Kapuskasing and the entire region,” in a statement posted to the town’s social media page.

“It is about the workers who show up every day, the families who depend on this mill, and the businesses that make up our local and regional economy,” said Plourde.

He described the agreement as providing “near-term stability” while a long-term solution is developed.

“We now have a second chance – a window of opportunity to come together, calmly and deliberately, to build a plan for modernization and long-term competitiveness,” said Plourde

Closure averted, challenges remain

In his own news release Saturday morning, Cochrane Mayor Peter Politis also celebrated the news of upper-tier government support.

“Today, I am pleased to confirm that both the federal and provincial governments have agreed to provide support for the Kapuskasing Paper Mill,” he said.

Politis said the action means the “devastating economic consequences” of a closure have been avoided. However, he noted that some short-term disruptions are expected.

“While the wheels were already in motion for layoffs, and some immediate impact may still be felt,” Politis said.

Politis extended thanks to Premier Doug Ford and Prime Minister Mark Carney for “hearing our call and stepping up when it mattered most.”

Local leaders credited the outcome to the ‘determination and fortitude of northerners,’ and praised the community of Kapuskasing.

A lack of government funding was behind what Kap Paper called “the orderly idling of operations” it announced on Monday.

However, on Wednesday, while company executives were in talks with the senior government officials, several hundred people showed up for a rally that featured speeches by several politicians from across the region.

“That same spirit and unwavering pride will be essential as we rethink and forge Canada’s economic sovereignty for the future,” said Politis.

These agreements marks a reprieve for the mill, which is a cornerstone employer in the region.

“As political leaders and as a country, we have come together in the face of adversity to collaborate and lead,” said Politis.

The goal is to “ensure that Kapuskasing remains strong not just for today, but for generations to come,” said Plourde to conclude his statement.

“Together, we will continue to press forward and deliver a sustainable, durable future for Kapuskasing and northeastern Ontario.”

RELATED STORIES:

• Hundreds rally in northern Ont. to protest idling of historic Kapuskasing paper mill
• Northern Ont. officials call on feds, province to stop Kap Paper mill closure
• Ottawa says it will ‘keep working’ with northern Ont. paper mill to resume its operations
• Northern Ont. paper mill announces plans to close
• Kapuskasing mayor says hard work continues to keep Kap Paper open
• Northern Ont. paper mill could become a victim of U.S. tariffs