GreenFirst Forest Products Inc. (TSX: GFP) has announced that its wholly-owned subsidiary, Kap Paper Inc., has secured a $24 million non-revolving term loan facility to support its paper mill operations in Kapuskasing, Ontario.
The financing will be used for general working capital purposes.
Terry Skiffington, CEO of Kap Paper, stated that the financing will allow the company to move forward with its long-term strategy and ensure the mill's competitiveness. Kap Paper has been working to improve operational efficiencies after facing challenges in recent quarters, some of which were caused by external events.
Kap Paper is the only pulp and paper mill operating in Eastern Ontario, making its operations crucial for mitigating challenges related to diminishing chip consumption, which threatens sawmill operations in the province. GreenFirst's CEO, Joel Fournier, emphasized that the financial support is integral to the company's long-term strategy, as its sawmills in Kapuskasing, Hearst, and Cochrane rely on Kap Paper's operations as an outlet for their chips.
GreenFirst Forest Products prioritizes sustainable forest management and lumber production. With four sawmills operating within over 6.1 million hectares of FSC® certified public forests in Ontario, GreenFirst emphasizes responsible practices that provide a competitive advantage in the building products market.
This $24 million investment signifies GreenFirst's commitment to the future of Kap Paper and its role within the larger GreenFirst operations.
