The Globe and Mail reports in its Saturday, Oct. 18, edition that the owner of an idled paper mill in Kapuskasing, Ont., plans to restart operations and recall 300 employees after receiving a government bailout. The Globe's Matthew McClearn writes that the Ontario government has provided over $50-million to Kap Paper in the past two years and committed an additional $16.8-million to stabilize mill operations. The federal government will contribute $12-million as well. Dave Plourde, mayor of Kapuskasing and a director of the company, said those funds could last through Christmas and possibly longer while Kap Paper drafts a long-term restructuring plan for the century-old mill. Ontario's Natural Resources Department said the mill employs 300 and supports 2,500 direct and indirect jobs at nearby sawmills and throughout the region. Kap Paper announced the mill's idling last month, citing a failure to obtain emergency government support. The two governments have taken on the task of financing Kap Paper's restructuring, a responsibility the private sector has rejected. After divesting the struggling mill last year, Greenfirst Forest Products left Kap Paper to seek bailout funding, which it has struggled to secure.
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