Relieved Kap Paper employees will begin to head back to work in Kapuskasing as soon as next week.
Intensive collaboration between the Ontario and federal governments resulted in the agreement to provide operational support to Kap Paper, as the mill works towards a long-term modernization plan.
Kapuskasing Mayor Dave Plourde called Friday a proud day for the community and confirmed that the mill now has different forms of funding with agreements in place from both levels of government, which will enable the mill to continue operations.
“Right now, the mill is idle, and there’ll be a full restart to the facilities, in a safe manner with employees being recalled as soon as operationally possible,” Plourde said.
Hundreds of people from the towns of Kapuskasing, Hearst, Cochrane, and Chapleau came together for a rally earlier this month, urging the two levels of government to work together for a solution to keep the plant open and secure upwards of 2,500 jobs in the region.
“When Northerners speak up respectfully and stand together, we get results,” Plourde said.
Northern Ontario mayors called the agreement that will keep Kap Paper operating a testament to community spirit, respectful advocacy, and effective partnership across governments. The leaders pledged to keep working with Kap Paper and the provincial and federal governments to secure a stable future for families and local businesses across the region.
The Northwestern Ontario Municipal Association (NOMA) and the Federation of Northern Ontario Municipalities (FONOM) applauded the decision and credited Patty Hajdu, minister of jobs and families and minister responsible for FedNor, and the federal government for recognizing the critical importance of the forestry and pulp and paper sector to Northern Ontario’s economy.
Marathon Mayor Rick Dumas, and NOMA president, said NOMA appreciates Hajdu’s leadership and the federal government’s continued attention to the challenges facing Kap Paper.
“The North’s workers, businesses, and communities have proven time and again that when governments step up, they deliver,” Dumas told The Chronicle-Journal.
“This recognition of Kapuskasing’s vital role in the regional and national economy is a positive step forward.”
Meanwhile, Kap Paper will continue to work closely with both governments, First Nations, union partners, and municipal leaders to finalize details of the modernization plan. Plourde says they need to secure the mill’s long-term competitiveness and reinforce an integrated forestry supply chain that supports Canada’s housing and economic goals.
