Today, the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario (FedNor), issued the following statement:
"Canada's strength comes from our workers, and the Government of Canada's support for them will not waver.
"Communities like Kapuskasing have long been at the heart of Canada's forestry sector, driving regional economies and sustaining good jobs for generations. The challenges faced by Kap Paper have placed extraordinary pressure on the company and its workers.
"That is why the Government of Canada is stepping up with short-term support to help stabilize operations while the company continues to pursue a path toward long-term sustainability. Through FedNor, we are providing $10 million in conditional repayable funding under the Northern Ontario Development Program to help maintain operations, and an additional $2 million through the Regional Economic Growth through Innovation Program to advance the business planning, engineering, and development work needed to modernize and access new markets.
"This exceptional measure recognizes the vital role Kap Paper plays in Northern Ontario's forest economy and in sustaining local jobs. It is designed to provide the company with the time and space needed to finalize plans for modernization and competitiveness, as a bridge to a stronger future.
"We are focused on supporting Northern Ontario communities and the workers who make them thrive."
