GreenFirst Forest Products Applauds Restart of Kap Paper Operations, Strengthening Northern Ontario’s Forestry Sector
Toronto, Ontario – Green First Forest Products Inc. (TSX: GFP) (“Green First” or the “Company”) has expressed strong support for the recent announcement confirming the restart of operations at Kap Paper Inc. (“Kap Paper”) in Kapuskasing, Ontario. The decision marks a pivotal moment for the region’s forestry sector, signaling renewed collaboration between Canada’s federal and provincial governments and a shared commitment to revitalizing Northern Ontario’s economy.
The relaunch of Kap Paper’s operations represents more than a local economic boost—it is a strategic step toward stabilizing the forestry supply chain across Northeastern Ontario. For years, lumber producers in the region have faced challenges related to the efficient use and management of sawmill residues, such as wood chips and biomass byproducts. The reopening of Kap Paper directly addresses these issues by providing a sustainable outlet for these materials, ensuring that resources are used more efficiently while supporting job creation and environmental stewardship.
“This decision brings real stability to our communities and helps build a strong foundation for continued growth and improvement of our business in Northern Ontario,” said Joël Fournier, Chief Executive Officer of GreenFirst Forest Products. “We are deeply grateful for the leadership shown by both the provincial and federal governments, as well as for their recognition of the vital role forestry plays in Canada’s northern economy.”
Strengthening Regional Stability and Collaboration
Northern Ontario has long been an essential hub for Canada’s forestry and manufacturing industries. However, in recent years, many communities dependent on these sectors have faced uncertainty due to market fluctuations, mill closures, and evolving environmental policies. The restart of Kap Paper provides renewed optimism for workers, local businesses, and industry partners who rely on a stable forestry ecosystem.
For GreenFirst, the revival of Kap Paper has significant operational implications. The company’s sawmills—key producers of softwood lumber—generate wood residues that are essential raw materials for paper production. With Kap Paper resuming its operations, GreenFirst now has a more consistent and sustainable outlet for these byproducts. This not only enhances efficiency and reduces waste but also supports GreenFirst’s broader goal of creating a fully integrated, circular forestry economy in Ontario.
The initiative is a testament to the power of collaboration between different levels of government and private enterprise. Federal and provincial support was instrumental in facilitating the restart, showcasing a coordinated approach to revitalizing resource-based industries in Canada’s northern regions. Such partnerships are critical to ensuring that rural and remote communities—many of which depend heavily on forestry—remain economically resilient and environmentally sustainable.
Long-Term Vision for a Sustainable Future
Beyond the immediate restart, GreenFirst has been informed that the federal government and Kap Paper leadership plan to explore a long-term transformation project for the paper mill. This initiative aims to modernize and adapt the facility for future competitiveness, integrating new technologies and sustainability-focused production models that align with Canada’s climate and clean-growth objectives.
This long-term vision reflects a broader industry shift toward innovation and green transformation. The goal is not only to sustain operations but also to reimagine them—developing processes that reduce carbon footprints, improve energy efficiency, and strengthen the industry’s role in the emerging bioeconomy. By working together on this initiative, Kap Paper, the government, and industry partners like GreenFirst are setting the stage for a stronger, more resilient forestry sector capable of meeting the demands of a low-carbon future.
Supporting Northern Communities
For the communities of Northeastern Ontario, the benefits of the restart extend far beyond the mills themselves. Forestry operations are deeply interwoven with local economies, supporting thousands of direct and indirect jobs—from harvesting and transportation to maintenance and equipment manufacturing. The reopening of Kap Paper means renewed employment opportunities and greater economic stability for families and small businesses across the region.
In addition, the project highlights the importance of responsible forest management and local stewardship. GreenFirst’s commitment to sustainable forestry ensures that the resources powering this economic revival are managed with care, preserving biodiversity and maintaining the long-term health of Ontario’s vast forests.
“Forestry has always been a cornerstone of Northern Ontario’s identity,” added Fournier. “By investing in modernization, sustainability, and collaboration, we are ensuring that these communities can thrive for generations to come.”
About GreenFirst Forest Products
GreenFirst Forest Products Inc. is a forest-first business built on a foundation of sustainability, innovation, and respect for natural resources. The Company operates four sawmills strategically located within Ontario’s rich wood baskets and manages more than 6.1 million hectares of FSC®-certified public forestlands (FSC®-C167905). This certification underscores Green First’s dedication to responsible forest stewardship, ensuring that every hectare is managed according to the highest environmental and social standards.
GreenFirst produces high-quality lumber and other wood products that are essential for Canada’s construction and manufacturing industries. The Company firmly believes that lumber—one of the most renewable and carbon-friendly building materials available—holds the key to a more sustainable future. Through its responsible practices and innovative operations, GreenFirst continues to leverage both cyclical and long-term advantages in the building products market.
At its core, GreenFirst is driven by a simple but powerful mission: to create value through sustainable forestry while contributing to the prosperity of the communities it serves. The restart of Kap Paper is an important step forward in realizing this mission—reinforcing GreenFirst’s commitment to growth, sustainability, and partnership across the region.
The resumption of operations at Kap Paper Inc. represents a major milestone for Northern Ontario’s forestry sector. It strengthens local economies, promotes sustainable industrial practices, and demonstrates what can be achieved through effective collaboration between industry and government. For Green First Forest Products, this development provides not only operational stability but also an opportunity to continue leading the charge toward a greener, more sustainable future for Canada’s forest-based industries.