GreenFirst Temporarily Curtails Ontario Sawmill Operations After Kap Paper Idling

On Tuesday, GreenFirst Forest Products announced a temporary curtailment of certain operations to reassess its options, following Kap Paper’s decision to begin idling its Kapuskasing paper mill.

The idling of Kap Paper—GreenFirst’s primary customer for wood by-products—intensifies the challenge of managing residual materials in Ontario, the company said. It marks the fourth pulp and paper mill to close in the province over the past two years. The two remaining mills in Western Ontario cannot absorb the full volume of chips and biomass generated by sawmills across the province.

Effective October 6, GreenFirst will reduce sawmill operations for one week at its Kapuskasing, Hearst, and Cochrane facilities. The Kapuskasing site may face an extended curtailment, given its location and added challenges. Kiln and planer mill operations will continue as scheduled, without interruption; only sawmill operations will be affected by this temporary curtailment.

GreenFirst said the curtailments will be reassessed as conditions evolve, citing elevated US lumber duties, ongoing market uncertainty, and currently low lumber prices as key factors.

About 140 direct employees will be affected.