The Canadian federal government is investing $7.5 million to help Kap Paper evaluate a potential transition to medium-density fibreboard production.
Engineering Study Scope
The funding supports a front-end engineering design study, commonly known as FEED. This detailed technical work will:
- Evaluate equipment and process requirements for MDF production
- Estimate capital costs for facility conversion
- Assess market opportunity and competitive positioning
- Establish go/no-go criteria for full investment commitment
MDF represents a growth market driven by construction, furniture manufacturing, and interior design applications.
Building on Previous Support
This investment follows $10 million in earlier federal support through the Federal Economic Development Agency for Northern Ontario (FedNor). Combined federal investment now totals $17.5 million.
Regional Economic Significance
Kap Paper plays an important role in northeastern Ontario's economy. The Kapuskasing-area facility provides:
- Direct employment for local workers
- A market for residual wood chips from regional sawmills
- Economic activity supporting local businesses and services
- Tax revenue for municipal and provincial governments
Original Source
This article is based on information from Pulp and Paper Canada. For complete details and updates, please refer to the original source.