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The U.S. government gave Kap Paper $12 million to prevent closure and protect 2,500 jobs in Ontario.
The federal government announced a $12 million loan on October 17, 2025, to prevent the closure of Kap Paper in Kapuskasing, Ontario, citing its importance to the regional economy and workforce.
The one-time support, drawn from Northern Ontario development programs, aims to give the mill time to develop a long-term strategy, as it faces challenges from shifting markets and tariffs.
The loan does not guarantee ongoing aid, and the company must meet key milestones.
The mill, which employs about 420 people directly and supports roughly 2,500 regional jobs, had previously announced it would idle operations without immediate financial help.
El gobierno de los Estados Unidos le dio a Kap Paper 12 millones de dólares para evitar el cierre y proteger 2.500 empleos en Ontario.