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FedNor to provide $10M to Kap Paper; agency says funding aims to sustain over 2,000 jobs

Justin Barber

Nov 1, 2025 — 1 min read

FedNor will provide $10 million in conditionally repayable funding to Kap Paper to support its operations, Parliamentary Secretary Pauline Rochefort announced in Kapuskasing on Oct. 31, 2025. The agency said the funding is intended to help sustain more than 2,000 jobs in Kapuskasing and surrounding communities in Northeastern Ontario.

FedNor said the money, delivered through its Northern Ontario Development Program, is meant to keep the mill operating while the company plans next steps amid shifting market conditions in the forestry sector. Rochefort made the announcement on behalf of Patty Hajdu, Minister of Jobs and Families and the minister responsible for FedNor.

According to FedNor, the funding will:

cover targeted, eligible operating costs;
support exploration of new production opportunities; and
advance planning and engineering work.

Rochefort said the investment will allow Kap Paper to resume operations. Kap Paper operates a mill in Kapuskasing. CEO Terry Skiffington said the company will use the support to adapt to present‑day market conditions.

The federal government framed the FedNor support as part of broader trade‑resilience measures, including:

Strategic Response Fund: $5 billion for firms affected by tariffs, with a focus on sectors such as automotive, steel and aluminum, and flexibility to support other high‑value sectors, according to the federal government.
Regional Tariff Response Initiative: $1 billion over three years, delivered through regional development agencies, to assist small and medium‑sized businesses facing tariffs with productivity, cost management, supply‑chain resilience and market development.
Workforce Alliances and Sectoral Workforce Innovation Fund: $382 million over five years for workforce development projects involving government, employers, unions and industry groups.

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