September 18, 2025 – The Federation of Northern Ontario Municipalities (FONOM) and the Northwestern Ontario Municipal Association (NOMA) are urgently calling on the Government of Canada to take immediate action to safeguard Northern Ontario’s forestry sector. Without intervention, the organizations warn that Canada’s national housing strategy will be derailed.

In a joint letter to Prime Minister Mark Carney and Minister of Housing and Infrastructure Gregor Robertson, FONOM and NOMA stressed that Canada’s commitment to double housing construction under the Build Canada Homes initiative depends on a stable and competitive supply of Canadian lumber.

“At the heart of Canada’s housing plan is wood, and that wood comes from Northern Ontario,” said Danny Whalen, President of FONOM. “The Kapuskasing Paper facility is the linchpin in an integrated system that keeps sawmills across the region operating. If Ottawa doesn’t step in now, those sawmills will close, jobs will vanish, and the very foundation of the housing plan will crumble.”

The immediate concern is the pending closure of Kapuskasing Paper within two weeks. The facility provides critical markets for chips and bark; without it, sawmills in Kapuskasing, Hearst, Chapleau, and Cochrane will face cascading shutdowns.

“This is bigger than one mill—it’s about safeguarding a national supply chain,” said Rick Dumas, President of NOMA. “Once this capacity is lost, it cannot be rebuilt quickly—if at all. Canada cannot meet its housing promise without a strong forestry sector in Ontario’s North. The time to act is right now.”

FONOM and NOMA are calling on Ottawa to:

  • Direct funding from the Build Canada Homes agency to stabilize facilities like Kapuskasing Paper.
  • Address punitive U.S. duties and tariffs undermining Canadian producers.
  • Recognize Ontario’s forestry sector as a critical enabler of Canada’s housing strategy.

 

Ontario has already taken steps to support the industry, but federal intervention is now essential.

 

“We are ready to work with the Government of Canada on solutions,” added Whalen. “But the clock is ticking—we are talking about days, not months.”

 

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Media Contacts:
Danny Whalen, President, FONOM
705-622-2479 | [email protected]

Rick Dumas, President, NOMA
807-683-6662 | [email protected]