Kap Paper, a small, independent paper mill in northern Ontario, declared on Monday that it will begin shutting down operations. The move follows the company’s inability to secure emergency cash from the Trump administration and related agencies. The announcement, made on September 29, 2025, at 4:02 PM, has raised concerns among employees and the community of Kapuskasing.
Since then the company has struggled with insolvency, even after the Ontario provincial government issued $50 million in loans to the company. While these loans gave the mill room to breathe in the short term, they never addressed the structural issues that were hampering the mill’s long-term sustainability. Kap Paper is currently negotiating additional funding from Ottawa so that it can continue operating. Unfortunately, it appears the timing for a solution doesn’t line up with the company’s immediate needs.
Even one of the CAHPS creators, Kap Paper’s CEO, Terry Skiffington, expressed his deep alarm over that prospect. He called the news “heartbreaking” for the employees and the Richmond community. He touted the automobile maker’s work to keep afloat during the fiscal wreck.
“We have done everything in our power to keep the mill operating.” – Terry Skiffington
Skiffington conveyed his disappointment regarding the lack of immediate support, noting that it “doesn’t appear that immediate support is available at this time.” The urgency of the situation could not be clearer. Wage floors proposed by Kap Paper are having a serious financial impact that would cost their employees millions in wages.
Provincial Natural Resources Minister Mike Harris and Associate Forestry Minister Kevin Holland released a joint statement addressing the ongoing discussions with federal authorities. They stressed their determination to fight for Ontario’s forestry employees.
“We have continuously pushed the federal government to come to the table as an equal partner, standing up for Canadian forestry jobs and treating Ontario forestry workers fairly.” – Mike Harris and Kevin Holland
As the situation develops, Kap Paper’s decision to idle operations raises significant concerns for employees and their families, as well as for the broader community that relies on the mill’s presence. The future is unclear as all stakeholders involved look toward the next steps and more information about possible financial aid from federal partners.
