{"id":32338,"date":"2026-02-03T20:02:24","date_gmt":"2026-02-03T10:02:24","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=32338"},"modified":"2026-02-03T20:02:25","modified_gmt":"2026-02-03T10:02:25","slug":"ottawa-steps-in-new-gov-lifeline-could-see-kap-paper-pivot-to-mdf","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/ottawa-steps-in-new-gov-lifeline-could-see-kap-paper-pivot-to-mdf\/","title":{"rendered":"Ottawa Steps In: New Gov Lifeline Could See Kap Paper Pivot to MDF"},"content":{"rendered":"\n<p>The Mark Carney government has stepped in with a C$7.5 million injection to help secure the future of Kap Paper Inc, backing a new Front End Engineering Design (FEED) study that could see the Kapuskasing mill pivot into medium\u2011density fibreboard (MDF).<\/p>\n\n\n\n<p>The investment, announced over the weekend, was announced by the Honourable M\u00e9lanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions. The FEED study will establish the technical and commercial criteria required for a final investment decision on the new facility.<\/p>\n\n\n\n<p>\u201cKap Paper is a regional economic driver and provides key integrated support to northeastern Ontario\u2019s softwood lumber industry,\u201d Minister Joly said. \u201cThis investment will help the company define its plan to manufacture higher\u2011value products to diversify revenue streams, stabilise demand for fibre and maximise the economic output of harvested timber. For Ontario, developing these products will help create and maintain jobs and strengthen regional economies.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"9H7ZIrqc7lU\"><iframe loading=\"lazy\" title=\"Community reeling as Kap Paper plans to close\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/9H7ZIrqc7lU?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>The new injection comes four months after the paper mill announced plans to close sparking a widespread response in the local community.<\/em><\/figcaption><\/figure>\n\n\n\n<p>It also comes as the federal government ramps up support across Canada\u2019s wider forest\u2011products sector. <a href=\"https:\/\/woodcentral.com.au\/canada-pledges-1-2b-to-shore-up-forestry-and-scale-mass-timber\/\">In late 2025<\/a>, Ottawa committed $1.2 billion to strengthen domestic manufacturing, accelerate the adoption of mass timber in public buildings, and reduce reliance on U.S. markets. The package includes $700 million in loan guarantees through the Business Development Bank of Canada and $500 million from 2026\u201327 to expand Natural Resources Canada programs focused on product and market diversification.<\/p>\n\n\n\n<p>\u201cCanada\u2019s forest sector is a cornerstone of our economy and a source of pride and livelihoods in communities across the country,\u201d Tim Hodgson, Canada\u2019s Minister of Energy and Natural Resources, said at the time. \u201cWhen the government spends, we will select Canadian suppliers by default \u2014 backing Canadian lumber, Canadian jobs and Canadian leadership in sustainable construction.\u201d<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Mark Carney government has stepped in with a C$7.5 million injection to help secure the future of Kap Paper Inc, backing a new Front End Engineering Design (FEED) study that could see the Kapuskasing mill pivot into medium\u2011density fibreboard (MDF). The investment, announced over the weekend, was announced by the Honourable M\u00e9lanie Joly, Minister [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":32339,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"default","_instagram_share_type":"default","_medium_share_type":"default","_threads_share_type":"default","_google_business_share_type":"default","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[51,43,40],"tags":[],"ppma_author":[69],"class_list":{"0":"post-32338","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-americas","8":"category-structural-wood-products","9":"category-wood-products"},"authors":[{"term_id":69,"user_id":1,"is_guest":0,"slug":"woodcentral","display_name":"Wood Central","avatar_url":{"url":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/02\/MASTER-BRAND-MARK_POS_RGB-e1676449549955.jpg","url2x":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/02\/MASTER-BRAND-MARK_POS_RGB-e1676449549955.jpg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/32338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/comments?post=32338"}],"version-history":[{"count":2,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/32338\/revisions"}],"predecessor-version":[{"id":32341,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/32338\/revisions\/32341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media\/32339"}],"wp:attachment":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media?parent=32338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/categories?post=32338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/tags?post=32338"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/ppma_author?post=32338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}