Additional funding for Daiken North America aims to strengthen Ontario’s forest sector, create new jobs and expand export opportunities
HUNTSVILLE, Ontario — The Ontario government has announced an additional C$425,000 investment in Daiken North America to accelerate production of a pioneering laminated wood panel at its Huntsville manufacturing facility, a move designed to support jobs, strengthen regional supply chains and enhance the competitiveness of the province’s forestry industry.
The funding, provided through Ontario’s Forest Biomass Program, comes as the province continues efforts to bolster its forest sector against global market pressures, including the impact of U.S. tariffs. The investment will help bring a first-of-its-kind wood panel product to market more quickly while supporting local employment and manufacturing growth.
The announcement builds on a previously disclosed provincial commitment of C$10 million toward Daiken’s broader C$70 million modernisation programme at the Huntsville site. The upgraded facility is expected to begin production this summer, creating 10 new jobs while securing 128 existing positions.
Ontario strengthens support for forestry innovation
Ontario officials said the latest investment reflects the province’s strategy of backing advanced manufacturing projects capable of generating long-term economic benefits and opening new export opportunities.
Kevin Holland, Associate Minister of Forestry and Forest Products, said the investment would help position the province as a leader in next-generation forest products.
“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 Huntsville facility has been modernised to manufacture a proprietary laminated wood panel designed for applications including flooring, recreational vehicles and modular housing. According to the province, the product combines the structural benefits of oriented strand board with the smooth finish associated with particle board, offering a lower-cost and higher-performance alternative to imported materials.
Government officials said the additional funding will assist Daiken in scaling production on the new manufacturing line, helping the company expand into domestic and international markets.
New market opportunities for Ontario wood products
The investment is also intended to support Ontario’s long-term forestry strategy, known as the Roadmap to Protecting Ontario’s Forest Sector. The initiative seeks to modernise the industry, encourage innovation and increase demand for locally sourced wood products.
Provincial officials estimate the expansion of Daiken’s operations will create a new market for approximately 100,000 cubic metres of underutilised wood. The increased demand is expected to benefit businesses involved in harvesting, transportation and logistics throughout the region.
By supporting the production of value-added wood products domestically, Ontario aims to reduce reliance on imported materials while strengthening its position as a leading forest products manufacturer among G7 economies.
Daiken Corporation, headquartered in Japan and employing nearly 4,000 people globally, acquired the Huntsville operation and has since invested heavily in upgrading the facility.
Reflecting on the project’s progress, Tiger Yoshiura, President and CEO of Daiken North America Ltd., said:
“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.”
Al Stobbart, Senior Vice-President and Chief Operating Officer of Daiken North America Ltd., highlighted the significance of the partnership between government and industry.
“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.”
Industry leaders welcome investment
Industry representatives welcomed the funding, describing it as an important step toward expanding Ontario’s manufacturing base and increasing demand for sustainably sourced forest products.
Maryam Arefmanesh, Ph.D., Director of Innovation, Energy and Manufacturing at the Ontario Forest Industries Association (OFIA), said:
“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.”
Local political leaders also praised the announcement.
Graydon Smith, MPP for Parry Sound–Muskoka, said:
“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.”
Huntsville Mayor Nancy Alcock added:
“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.”
The latest funding announcement underscores Ontario’s broader ambition to grow a forestry sector that currently generates nearly C$21 billion in annual business revenue and supports approximately 155,000 jobs across the province.