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Kap Paper faces closure without federal aid amid a U.S. tariff hike and forestry downturn.
Kap Paper, a key pulp mill in northeastern Ontario employing 300 people and supporting 2,500 jobs, threatened closure unless the federal government acted on a 35.19% U.S. softwood lumber tariff rise.
The mill relies on forestry by-products to produce paper and faces financial strain amid an 8% decline in Ontario’s forestry sector.
Federal officials, including FedNor’s Patty Hajdu, said they are prepared to offer support through loans or program referrals.
Prime Minister Mark Carney’s $1.2 billion aid package, announced September 5, includes loan guarantees, market diversification funds, lumber procurement commitments, and worker retraining.
Regional leaders warn the mill’s closure could trigger shutdowns at local sawmills, harm the Build Canada Homes initiative, and increase forest fire risks.
Kap Paper se enfrenta al cierre sin ayuda federal en medio de un aumento de aranceles en los EE.UU. y la recesión forestal.