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flag Kap Paper faces closure without federal aid amid a U.S. tariff hike and forestry downturn.

flag 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. flag The mill relies on forestry by-products to produce paper and faces financial strain amid an 8% decline in Ontario’s forestry sector. flag Federal officials, including FedNor’s Patty Hajdu, said they are prepared to offer support through loans or program referrals. flag 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. flag Regional leaders warn the mill’s closure could trigger shutdowns at local sawmills, harm the Build Canada Homes initiative, and increase forest fire risks.

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