Northern Ontario wood plant gets $15M grant to reopen mill

A former northern Ontario wood plant is getting a grant from the province worth up to $15 million to return to making an important material used in new home builds.

Wawa OSB, which makes a type of engineered wood called oriented strand board (OSB), will receive the money over four years to create a new state-of-the-art facility, the Ontario government said in a news release earlier this week. It is part of a $181 million project to build the province's third OSB manufacturing facility.

"An investment of this size is one more way our government is supporting forestry and ensuring we secure the materials we need for our plan to Build Ontario," said Minister of Northern Development, Mines, Natural Resources and Forestry Greg Rickford in a news release.

"This exciting opportunity is another example of a new company choosing to invest in Ontario because of an improved business environment, and it will bring good jobs back to this region and benefit Indigenous communities."

Wawa OSB is owned by the Cossette family, who has been in the Quebec forestry industry for more than 65 years and involves three generations. The Wawa plant was built in the mid-1990s and produced OSB until 2007. The mill produced wood pellets for four years between 2013 and 2017 and has been closed for five years.

The government grant will help the company purchase modern equipment and hire the employees needed to set up and operate the plant, Wawa OSB said in a news release.

The Wawa mill is expected to create 140 direct jobs.

"We are very excited about the opportunity to establish ourselves in Ontario. We are at the beginning of the adventure and there is still a lot of work to be done before we produce our first panel," said Yolaine Rousseau, the executive vice president of Wawa OSB Inc.

"We will be operating on First Nations territory, and we want to work with all the stakeholders to maximize the regional economic benefits. On behalf of the Cossette family, employees, and partners, I would like to thank the Government of Ontario for its support of this promising project for the northeast region and for all of Ontario."

The spot was chosen because of the availability of low-grade poplar and birch, which are used to make the popular building material, the government said in a news release.

This announcement came just days after the Ford government announced it is reducing electricity costs for the industrial sector in the northern region. 

"Through Ontario’s Forest Sector Investment and Innovation Program we are creating jobs and supporting innovation and economic growth in the North, said the Minister of Economic Development, Job Creation and Trade Vic Fedeli, who is also the Nipissing MPP.