The Ontario government is investing an additional $425,000 through the Forest Biomass Program to help Daiken North America accelerate production of its new laminated board. This investment will help get a first-of-its-kind wood panel product to market faster, boosting productivity and protecting good-paying local jobs. 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.
Today’s announcement builds on the government’s recent investment of $10 million to support Daiken’s $70 million plan to upgrade its laminated board production line at its manufacturing facility in Huntsville. The facility is set to begin manufacturing this summer, creating 10 new good-paying jobs and protecting 128 existing positions.
“With this investment in Daiken, our government is positioning Ontario’s forest sector as a global hub of investment and innovation,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “Guided by our roadmap for the industry, we’re building international partnerships to deliver cutting-edge forest products to people and businesses at home and around the world.”
The modernized facility has been equipped to manufacture a new type of wood panel used in flooring, recreational vehicles and modular housing. 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. The $425,000 in additional funding will help Daiken scale up production on the new manufacturing line, supporting the company’s continued growth into new markets.
Ontario’s investments in Daiken are advancing the Roadmap to Protecting Ontario’s Forest Sector, the government’s long-term plan to Defend, Adapt and Grow the province’s cornerstone industry. Modernizing and scaling-up the company’s operations will reinforce regional supply chains and establish a new market for 100,000 cubic metres of underutilized wood, adding business demand for harvesting, hauling and trucking.
By equipping Ontario to manufacture a low-cost, high-performance alternative to imported goods, the government is reinforcing the province’s reputation as a G7 leader in forest sector manufacturing and building the competitive advantage of Ontario-made forest products in domestic and international markets.
Guided by the Roadmap to Protecting Ontario’s Forest Sector, the government will continue to make strategic investments that accelerate productivity, advance innovative manufacturing, strengthen markets for Ontario wood and attract international investments that position the province to compete and thrive in the global forest product economy.
Quick Facts
- Daiken Corporation is an international panel producer based in Japan with close to 4,000 employees. Daiken North America’s Huntsville facility will manufacture a proprietary wood panel that combines oriented strand board’s strength and flexibility with particle board’s smooth surface, suitable for use in flooring, recreational vehicles and modular housing.
- The government released the Roadmap to Protecting Ontario’s Forest Sector on April 28, setting out a 10-year plan to maintain Ontario’s position as a G7 leader in making and selling wood products, with the competitive excellence and transformative technologies to unlock new global markets.
- The Forest Sector Investment and Innovation Program has approved $100 million in funding to reinforce forest sector productivity, securing an added $546 million in external investments, creating close to 500 new jobs and helping to retain another 3,800 jobs.
- The Forest Biomass Program has committed over $65 million in targeted investments to 61 projects, leveraging over $250 million in additional external funding and creating more than 110 new jobs.
- Ontario’s forest sector is an essential industry, generating close to $21 billion in business revenue and supporting close to 155,000 jobs.
Quotes
"This is the moment we have been waiting for as well as customers, local forest industry and communities. It‘s unbelievable we are about to finalize the $70M project and launch the product into the market in only two years after the acquisition. We would’ve not seen such a quick turnaround without massive support by Ontario and other governments."
- Tiger Yoshiura
President & CEO, Daiken North America Ltd.
"The Daiken Huntsville facility greatly appreciates the investment and commitment of the Government of Ontario to this project. There is no doubt that their investment, along with Daiken Corporation’s investment will make a significant impact on this business and the community as a whole. We are very enthusiastic to get this upgraded facility up and running in July, and enhance our contributions to the community and Town."
- Al Stobbart
Senior Vice-President and Chief Operating Officer, Daiken North America Ltd.
"OFIA welcomes this investment in the production of innovative, Ontario-made wood panels manufactured from locally sourced forest fibre. Expanding into these high-value markets creates jobs, strengthens the province's forest supply chain, and increases demand for sustainably sourced Ontario forest products. Investments like this align with the objectives of Ontario's Forest Biomass Program and the Forestry Roadmap to Protect, Adapt and Grow Ontario's Forest Sector by advancing innovation, strengthening manufacturing competitiveness, and supporting the long-term growth of the province's forest economy."
- Maryam Arefmanesh, Ph.D.
Director of Innovation, Energy and Manufacturing, Ontario Forest Industries Association (OFIA)
"Forestry has been part of the fabric of Parry Sound–Muskoka for generations, and investments like this help ensure it remains a strong part of our future. I'm proud to see our government supporting local manufacturing, protecting and creating good-paying jobs, and helping companies like Daiken bring innovative new products to market right here in Muskoka."
- Graydon Smith
MPP, Parry Sound–Muskoka
"The Ontario government’s continued investment in Daiken’s Huntsville production facility demonstrates its commitment to supporting our local economy, advancing innovation in the forest sector, and creating good-paying jobs. We are grateful to Daiken for its ongoing commitment to Huntsville and the confidence it continues to show in our community. Today’s announcement highlights how strong public and private sector partnerships can bolster local manufacturing, drive economic growth, and enhance Ontario’s competitiveness in global markets."
- Nancy Alcock
Mayor of Huntsville