FedNor funds will help the business adapt and respond to shifting market conditions in the forestry industry of Northern Ontario
For generations, the forestry industry has been the backbone of Northern Ontario, driving opportunity and growth in our communities. Today, as global trade shifts and new challenges emerge, we're supporting these industries to thrive.
Today, Pauline Rochefort, Parliamentary Secretary to the Secretary of State (Rural Development) announced the delivery of $10 million in conditionally-repayable FedNor funds to support the continued and future operations of Kap Paper. The announcement was made on behalf the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for FedNor.
FedNor will provide $10 million in Northern Ontario Development Program funding to Kap Paper to support targeted, eligible operating expenses. This funding will help the company maintain operations, explore new production opportunities, and proceed with business planning, engineering, and development work in the months ahead.
This support addresses critical business needs, reinforces the regional forestry industry, and helps sustain over 2,000 jobs in Kapuskasing and surrounding communities.
This FedNor support is part of the Government of Canada's ongoing commitment to support local industries across the country with trade resilience measures, through initiatives such as:
- The Strategic Response Fund, through which the Government of Canada will invest $5 billion with flexible terms to help firms in all sectors impacted by tariffs adapt, diversify, and grow, with support provided to industries by new Workforce Alliances to align training and workforce needs.
- The Regional Tariff Response Initiative, through which the Government of Canada will provide $1 billion over 3 years to support small and medium-sized enterprises (SMEs) impacted by tariffs, strengthening the competitiveness of Canadian businesses by helping them boost productivity, cut costs, build more resilient supply chains, and reach new markets.
- The Workforce Alliances and Sectoral Workforce Innovation Fund, through which the Government of Canada will invest $382 million over five years to tackle urgent labour market challenges, bring together government, employers, unions, and industry organizations to develop and implement tailored workforce development strategies, and drive growth.
Economic uncertainty resulting from a rapidly changing global landscape is putting pressure on businesses and workers across Canada. That is why the Government of Canada is acting now, and creating measures to equip the industries of Northern Ontario with the tools needed to remain strong, and to continue building forward.
