Ontario Investing to Protect Forest Sector Jobs in Northern Ontario

Investment will support economic growth, job creation and innovation in Ontario’s forestry sector

The Government of Ontario is protecting workers and jobs in the forest sector by investing more than $5 million in Northern Ontario to help the sector repair key regional infrastructure and adopt new technology to modernize operations and increase productivity. As part of the government’s plan to protect Ontario, these investments will boost Ontario’s forest sector’s competitive advantage by creating new jobs, increasing productivity and opening up opportunities for new revenue streams in new markets for underused wood and mill by-products, known as forest biomass.

“Our government recognizes that forest sector productivity begins with hard-working people and innovative, efficient businesses in Northern Ontario,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “We’re investing to build a more resilient forest sector in the North, ensuring our businesses are ready to seize new opportunities and protect the good jobs that build strong communities.”

This investment includes $5 million under the Forest Biomass Program’s Innovative Bioproduct Manufacturing funding stream to help wood products manufacturer EACOM install equipment and technology for AI screening. The project will increase production capacity by 12 per cent, reduce wood waste by 25 per cent and reduce emissions by 21 per cent.

Investing in this project will boost the forest sector’s competitiveness to increase the sector’s ability to respond to changing market demand with cost-efficient production. The project will also diversify forest sector operations and unlock added value from forest resources. Each project will enable greater processing of small diameter logs, creating new demand for underused wood.

Ontario’s investment also includes $475,000 to equip Northshore Forest Inc. to complete vital repairs to the Wenebegon River bridge, approximately 120 kilometres north of Thessalon. The funding will benefit the region’s residents and businesses by maintaining infrastructure commonly used by anglers, hunters and outdoor enthusiasts, regional tourism operators and the forest sector.

These investments are the government’s latest action to build resilient and competitive businesses and ensure continued stability for workers and families. Ontario’s forest sector is a vital Canadian industry. Ontario is actively pursuing new partnerships with the Canadian government and welcomes federal participation in a formal discussion table to identify new measures to deliver on shared commitments to Canadian workers.

Quick Facts

• Forest Biomass Program investments deliver on the government’s commitment to drive forest sector growth through innovation, diversification and integration. To date, the program has committed close to $50 million in targeted investments to more than 55 projects. This investment builds on Associate Minister Holland’s recent announcements of Forest Biomass Program funding on May 21, July 7 and July 25.
• Ontario’s Forest Biomass Program investments complement Forest Sector Investment and Innovation Program funding, which includes close to $72 million to give businesses the tools and technology to create jobs and unlock greater productivity.
• The Provincial Forest Access Roads Funding Program reimburses industry for the public use portion of the costs of building and maintaining public access road infrastructure in provincial Crown forests: a network over 19,500 km long. This could include unexpected repairs due to extreme weather events.
• The forest road network provides extensive economic and non-economic benefits essential to daily life, work and recreation in many Indigenous, rural and Northern communities. In addition to the forest sector, mining operations, tourism operators and utility and railway companies rely on the road network – as well as emergency preparedness and response.
• Ontario’s forest sector generated $21.6 billion in revenue from the sale of manufactured goods and services in 2023 and supported over 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.