Ontario Investing $10 Million in Forest Sector Innovation

Investment will help Daiken manufacture innovative made-in-Ontario wood products

HUNTSVILLE - The Ontario government is investing $10 million through the Forest Sector Investment and Innovation Program to help Daiken North America upgrade its laminated board production line at its manufacturing facility in Huntsville. This investment will help the company bring a first-of-its-kind wood panel product to market, create jobs and boost productivity. As part of its plan to protect Ontario, the government is making strategic investments to help forest sector businesses adapt, compete and grow to stay resilient in the face of U.S. tariffs.

“Our government’s investment in Daiken marks another chapter for our province’s innovative forest sector,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “We are building new partnerships to bring global opportunities to Ontario, protect local jobs and equip our forest sector to adapt, compete and thrive.”

Daiken’s $70 million project will equip them to manufacture a new type of wood panel used in flooring, recreational vehicles and modular housing, while supporting 128 existing jobs and creating 10 new jobs. This made-in-Ontario forest product is the first of its kind in the world, offering a higher-performance, lower-cost alternative to imported material. It will be made available to domestic and international markets, enhancing Ontario’s reputation as a world-recognized manufacturer of innovative and sustainably-sourced wood products.

Supporting Daiken’s project will also help build a stronger forest sector by providing a new market for underused wood and supporting 28 forest sector businesses through the region.

“Ontario’s forestry sector is a key pillar of our economy, supporting over 100,000 jobs across the province,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Through the Forest Sector Investment and Innovation Program, our government is ensuring companies like Daiken can scale their operations, which will not only strengthen our domestic manufacturing supply chains but expand the reach of Ontario-made products to new markets, increasing the sector’s resilience and competitiveness.”

Under the Forest Sector Investment and Innovation Program, over $72 million will be invested to help Ontario forestry companies develop and implement innovative technologies, improve productivity and enhance their competitiveness by creating new opportunities in an increasingly competitive global market.

Today’s investment builds on the government’s work to protect Ontario forest sector workers and businesses through strategic investments and actions in the Sustainable Growth: Ontario’s Forest Sector Strategy and the Forest Biomass Action Plan.

Quick Facts

• Daiken Corporation is an international panel producer based in Japan. The company has close to 4,000 employees, with net sales equivalent to $2.3 billion in 2022. Daiken North America’s Huntsville facility employs 128 people, manufacturing panels sold to Original Equipment Manufacturers (OEM) as well as Canadian and U.S. distributors.
• Development of the company’s proprietary wood panel began in 2018. It combines the strength, flexibility and nail-holding ability of oriented strand board with the smooth surface of particle board and can be manufactured in custom thicknesses as thin as 2.7 mm.
• The forest sector generated $21.6 billion in revenue from the sale of manufactured goods and services in 2023 and supported 128,000 direct and indirect jobs in 2024.
• Wood produced from Ontario’s Crown forests is sustainably sourced and renewable. Wood is a renewable resource, a clean energy source, and a sustainable – and biodegradable – alternative to single-use plastics.