Unifor demands federal funding to save Kap Paper mill jobs

KAPUSKASING, ON, Sept. 29, 2025 /CNW/ - Unifor is urging the federal government to provide funding and support to Kap Paper in Kapuskasing, Ont. to prevent a permanent curtailment that will lead to widespread job loss across Northeastern Ontario.

An exterior view of the Kap Paper mill in Kapuskasing, Ontario. (CNW Group/Unifor)

"The Kap Paper mill has received provincial support in recent years and had expected similar strategic funding from the federal government but nothing has materialized in time to allow them to restructure and maintain thousands of good rural jobs," said Unifor National President Lana Payne. "This closure is yet another sign of the urgent need for strategic investment in forestry across Canada so we can take on nation-building projects and protect good Canadian jobs."

While there has been investment from the Ontario government into the mill in recent years, including a $6 million loan extension, the mill has repeatedly urged for similar strategic investments from the federal government to secure jobs in Northeastern Ontario and ensure the sawmills, contractors, truckers and other businesses that rely on Kap Paper can continue to operate.

The union has been clear about the need for forestry sector supports and a national industrial strategy if Canada hopes to be self-sufficient in supplying lumber and other wood products and not rely on U.S. or other imported goods.

"Recent figures show that we will need to build more than 2 million homes in Ontario in the next decade -- there is no way we can accomplish that without a robust lumber supply chain supported by mills like Kap Paper," said Unifor Ontario Regional Director Samia Hashi. "Canada needs a national forestry strategy if we ever hope to meet the Build Canada Homes objectives and build the housing we need. We can't build Canadian or buy Canadian if we lose our mills."

Unifor Local 89 and Local 256 together represent 170 members at the Kapuskasing, Ont. mill.

Unifor is Canada's largest union in the private sector, representing 320,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

SOURCE Unifor

For media inquiries, please contact Unifor National Communications Representative Shelley Amyotte at [email protected] or 902-717-7491.