Industry Minister Melanie Joly says the federal government will keep working with the company on options to resume operations.Adrian Wyld/The Canadian Press
Industry Minister Mélanie Joly said on Tuesday that Ottawa remains at the table to offer financial supports aimed at preventing job losses at a struggling Ontario paper mill that announced it was suspending operations.
Kap Paper, whose mill has operated in the town of Kapuskasing, Ont., for more than a century, said on Monday it was unable to secure the short-term support it needed from the federal government, even after the province of Ontario had given it $50-million in loans. As a result, the company is idling the mill.
However, a statement from Ms. Joly’s office said her department is still fighting for the jobs that are on the line, and urged the provincial government “to remain in lockstep” to hammer out a rescue package.
Kap Paper has said 420 people work at the mill and that 2,500 indirect jobs at sawmills, transport companies and other operations could also be affected by the closing.
The federal government said it has been working directly with Kap Paper and has advised the company to make a formal application to its Strategic Innovation Fund and targeted employment supports.
“We will keep working with the company on options to resume operations, and again we urge the provincial government to do the same. The workers at Kap Paper and the people of Kapuskasing deserve nothing less,” the statement from Ms. Joly’s office said.
Kap Paper said on Monday that the Ontario government urged it to seek long-term funding from Ottawa. However, the company said the timing of the suggested support did not align “for an immediate solution to keep the mill operational.”
Kap Paper said on Tuesday it had nothing to add in response to the statement from Ms. Joly’s office.
Several mayors from the region and the local MPP have scheduled a news conference for Wednesday to discuss the situation.