Kapuskasing’s paper mill secures $24M loan

Kapuskasing's paper mill secures $24M loan Kapuskasing town officials say they are excited about the future of its pulp and paper mill after the announcement of new working capital.

Officials with the Town of Kapuskasing said they keep in regular contact with Greenfirst Forest Products, the company that operates the historic sawmill and paper mill.

About a year ago, they said they were told investment in the operations was coming.  On June 19, news came out that the company had entered into a loan agreement with a third party for $24 million to be used for general working capital purposes.

“I can't tell you if it's for special projects that they're going to announce down the line to do maybe feasibility studies for more, you know, advancements throughout the mill; we just don't have that information,” said Paul Nadeau, general manager of energy and economic development for the town.

Mayor Dave Plourde told CTV News it is imperative this – the only pulp and paper mill in northeastern Ontario – continue to find ways to operate.

“We're going to continue to work hard to ensure that, you know, this facility remains operational for years to come,” he said.

“Hopefully another hundred years but there has to be a plan.”

Plourde added “if this all goes down, technically all the sawmills in northeastern Ontario would go down (as) this mill here is the last man standing in northeastern Ontario.”

The mayor said  the mill needs a place to send the residual and if it's not here, then certainly we have to find an alternative.

In a news release, Greenfirst Forest Products said its sawmills throughout northeastern Ontario use Kap Paper’s operations as an outlet for its woodchips and it wants to create more operational efficiencies in what has been a tough pricing environment for paper products.

Town officials said the multi-million dollar investment could also encourage a housing partnership for future employees which would be welcomed since it’s struggling to attract employees needed now.

“We currently have roughly about 70 to 80 job openings for Kapuskasing on a weekly basis,” said Nadeau.

“It's quite a bit for a community our size. There's a number of those postings that are older postings that just get posted and posts that can't get filled,” said Nadeau.

The company also recently announced some accounting changes:  it will own the sawmill and shareholders will own the paper mill.