Federal funding to help Kap Paper diversify toward growth markets
There’s more federal funding to support the softwood lumber sector in the Northeast Region.
Ottawa is helping Kap Paper complete an engineering design study to support a pivot in its operations toward growth markets.
On the weekend, Industry Minister Melanie Joly announced $7.5 million from the fed’s Strategic Response Fund for the project.
Officials say the study will look to find what’s needed for a final investment decision on creating a new medium-density fibreboard facility.
They say it would keep Kap Paper operational, safeguard employment in Kapuskasing and strengthen the regional economy.
“Kap Paper is a regional economic driver and provides key integrated support to northeastern Ontario’s softwood lumber industry,” says Joly. “This investment will help the company define its plan to manufacture higher-value products to diversify revenue streams, stabilize demand for fibre and maximize the economic output of harvested timber. For Ontario, developing these products will help create and maintain jobs, and strengthen regional economies.”
The new money comes after $10 million in FedNor funding was announced last fall to support Kap Paper and protect its 240 workers and over 2,000 indirect jobs across the northeast.
Richard Coffinhttps://www.mynorthbaynow.com/Richard Coffin has been a reporter and news anchor on the radio in North Bay for over 25 years. From premiers to people in the neighbourhood, he enjoys connecting with newsmakers and writing stories that matter to area listeners on a variety of topics including healthcare, education, politics, sports and more.
