The Government of Canada is investing $7.5 million to fund a Front End Engineering Design study for Kap Paper Inc. in Kapuskasing, Ontario. The study will establish the criteria for a final investment decision on a proposed new medium-density fibreboard facility, a pivot intended to keep the mill operational and diversify its revenue streams. The funding was announced by the Honourable Mélanie Joly, Minister of Industry, according to the Government of Canada.
The Kapuskasing mill directly employs approximately 240 workers and supports an estimated 2,500 indirect jobs in regional forestry and logistics. The planned facility is designed to manufacture higher-value products, stabilize demand for wood fibre, and maximize the economic output of harvested timber in northeastern Ontario.
