HUNTSVILLE — The Ontario government is investing $10 million to help Daiken North America modernize its laminated board production line at its Huntsville facility, supporting the launch of a first-of-its-kind wood panel product developed in Ontario. The funding, provided through the Forest Sector Investment and Innovation Program, is part of a provincial effort to strengthen the competitiveness and sustainability of Ontario’s forest industry while protecting jobs across the sector.
Daiken’s $70 million project will enable the company to manufacture a new wood panel that offers higher performance and lower costs than imported materials. The innovation—known as DIO woodcore—is designed for use in flooring, recreational vehicles, and modular housing. Once operational, the expansion will support 128 existing jobs and create 10 new positions, reinforcing Huntsville’s role as a hub for advanced wood manufacturing.
“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.”
Driving Innovation and Economic Growth
Daiken’s Huntsville facility, which manufactures panels for both Canadian and U.S. markets, will now have the capacity to produce a made-in-Ontario wood product that is the first of its kind in the world. The project is expected to open new markets for underused wood and create supply opportunities for 28 regional forest sector businesses, supporting local economies while promoting sustainable resource use.
“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.”
The investment aligns with Ontario’s broader economic strategy, which includes a $72 million commitment under the Forest Sector Investment and Innovation Program to help forestry companies adopt cutting-edge technologies, improve productivity, and expand global competitiveness.
Global Innovation, Local Impact
Founded in Japan, Daiken Corporation employs nearly 4,000 people worldwide and reported $2.3 billion in sales in 2022. The company’s North American operations in Huntsville are central to its North American growth strategy, serving Original Equipment Manufacturers (OEMs) and distributors across Canada and the United States.
Daiken’s proprietary product, DIO woodcore, began development in 2018. It combines the strength and nail-holding power of oriented strand board with the smooth surface of particle board, making it suitable for a variety of applications. The product can be manufactured in custom thicknesses as thin as 2.7 millimetres, offering flexibility for manufacturers seeking lightweight, durable alternatives to traditional hardwood plywood.
“Back in 2017-2018, our parent company Daiken (Japan) developed a new fiberboard product, as a replacement of imported hardwood plywood,” said Tiger Yoshiura, CEO of Daiken. “The brand name of this proprietary new product is DIO woodcore. Through global market research, we found the biggest potential market in North America and located our operations in Huntsville. Thanks to millions of supports from provincial, federal, and municipal governments, our $70M project is ongoing toward the commercial production next Spring. DIO officially stands for Durable, Innovative, Original. But I would like to share today’s delight moment with Daiken (parent company), Itochu (ground parent company) and Ontario. We hope DIO will bolster the local economy and have Town of Huntsville famous as an innovative plant in the forest industry.”
Strengthening Ontario’s Forest Sector
Industry organizations and local leaders praised the investment as a forward-looking move that will create lasting benefits for Northern and rural Ontario.
“The Ontario Forest Industries Association welcomes Daiken North America’s investment in their Huntsville facility and thanks the Ontario Government for the support,” said Ian Dunn, R.P.F., President and CEO of the Ontario Forest Industries Association. “Innovative global companies, like Daiken, are continuing to make strategic investments in Ontario’s world-class advanced wood manufacturing industry. Today’s announcement is great news for Huntsville and the regional economy.”
Local representatives also highlighted the project’s importance to the region’s economy and long-term growth.
“Parry Sound–Muskoka is home to some of the most innovative and forward-thinking forestry companies in the country, employing thousands of residents directly and indirectly,” said Graydon Smith, MPP for Parry Sound–Muskoka. “I’m proud that Daiken has chosen our region for this critical investment, and I’m thrilled that our government is there to provide support when it’s needed most. We are proud to stand shoulder to shoulder with the forestry sector in Parry Sound–Muskoka, recognizing its vital role in driving our local economy and strengthening our communities. Our government remains committed to fostering sustainable growth, creating good jobs, and securing a prosperous future for this essential industry.”
Nancy Alcock, Mayor of Huntsville, added that the project demonstrates the community’s growing reputation for innovation and manufacturing excellence. “Huntsville is proud to be home to innovators, like Daiken, who are showcasing the strength of our forest sector and the talent of our local manufacturers, while having the vision to compete in both domestic and international markets,” Alcock said. “It is a shining example of how Ontario-made ingenuity can support our local economy while advancing sustainable practices.”
A Sustainable Future for Ontario Forestry
Ontario’s forestry sector remains one of the province’s largest natural resource industries, generating $21.6 billion in annual revenue and supporting 128,000 direct and indirect jobs. The government’s Sustainable Growth: Ontario’s Forest Sector Strategy and Forest Biomass Action Plan aim to maintain that momentum by supporting innovation, resource stewardship, and responsible growth.
With this latest investment, Ontario continues to position itself as a global leader in sustainable, value-added wood manufacturing — a future where innovation, job creation, and environmental responsibility go hand in hand.
