Kap Paper mill closure will be a hit to Ontario Northland's revenues

Kapuskasing Paper mill closure will be a hit to Ontario Northland’s revenues

Deck: FONOM warns that mill closure could devastate region’s forestry industry.

Jennifer Hamilton-McCharles

The Nugget

It’s unclear just how much impact the closure of Kap Paper will have on Ontario Northland.

According to the Federation of northern Ontario Municipalities (FONOM), Kap Paper contributes $74 million annually to Ontario, while also supporting 30 per cent of Ontario Northland Transportation Commission’s (ONTC) revenue.

However, the ONTC said Kap Paper represents four per cent of ONTC’s operating revenues.

Rebecca McGlynn, communication officer for ONTC, told The Nugget that Ontario Northland provides freight services throughout Northeastern Ontario, with several customers in the lumber industry