GreenFirst Announces the Temporary Curtailment of Some of its Operations

Executive Summary

• GreenFirst Forest Products Inc. announced a temporary curtailment of sawmill operations at its Kapuskasing, Hearst, and Cochrane facilities, effective October 6 2025, due to Kap Paper’s decision to idle its Kapuskasing paper mill – the company’s primary buyer for wood by‑products.
• Approximately 140 direct employees will be impacted; kiln and planer mill operations will continue uninterrupted.
• The curtailment reflects broader sector challenges, including elevated export duties/tariffs, low lumber prices, and ongoing uncertainty in U.S. lumber markets.

Key Details

• Curtailment Scope: Saw‑mill operations at three sites (Kapuskasing, Hearst, Cochrane) reduced for the equivalent of one week; Kapuskasing curtailment may extend beyond this period.
• Effective Date: October 6 2025.
• Employee Impact: ~140 direct employees affected by the temporary reduction in saw‑mill activity.
• Operational Continuity: Kiln and planer mill operations will proceed without interruption.
• Root Cause: Kap Paper’s orderly idling of its Kapuskasing paper mill, GreenFirst’s primary customer for wood by‑products, exacerbated by:
• Elevated duties and tariffs on lumber exports to the United States.
• Ongoing uncertainty in lumber markets.
• Persistently low lumber prices.
• Industry Context: This is the fourth pulp and paper mill closure in Ontario over the past two years; remaining mills in Western Ontario cannot absorb the full volume of chips and biomass generated province‑wide.
• Management Quote (CEO Joël Fournier): “We are navigating a period of significant uncertainty, marked by the idling of Kap Paper and challenging market conditions… we are doing everything possible to protect our operations, support our employees, and work with governments to find viable solutions for GreenFirst’s future.”

Notable Quotes

• Joël Fournier, CEO: “We are navigating a period of significant uncertainty, marked by the idling of Kap Paper and challenging market conditions. We are doing everything possible to protect our operations, support our employees, and work with governments to find viable solutions for GreenFirst’s future.”