The Ontario government announced today an additional investment of $425,000 in Daiken North America’s Huntsville manufacturing facility to help the company accelerate production of a first-of-its-kind engineered wood panel.
The province said the funds will strengthen Ontario’s forest sector while supporting local jobs.
The funding, announced through the province’s Forest Biomass Program, builds on a previously announced $10 million from the province in 2025, supporting Daiken’s $70 million modernization project at its Huntsville plant.
Once production begins later this summer, the upgraded facility is expected to create 10 new full-time jobs while protecting 128 existing positions.
Provincial officials say the latest investment will help Daiken scale up production of its proprietary laminated wood panel, allowing the company to bring the product to market more quickly while expanding into domestic and international markets.
The announcement comes as Ontario continues to invest in the forest products industry as part of its strategy to strengthen the sector against economic uncertainty and U.S. tariffs.
“With this investment in Daiken, our government is positioning Ontario’s forest sector as a global hub of investment and innovation,” said Associate Minister of Forestry and Forest Products Kevin Holland. “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 Huntsville facility has been equipped to manufacture a new engineered wood panel that combines the strength and flexibility of oriented strand board with the smooth finish of particle board. The product is designed for use in flooring, recreational vehicles and modular housing.
According to the province, the panel is the first product of its kind in the world and offers manufacturers a lower-cost, higher-performance alternative to imported materials.
The investment is also expected to strengthen Ontario’s forest supply chain by creating demand for approximately 100,000 cubic metres of underutilized wood, generating additional business opportunities for harvesting contractors, trucking companies and wood haulers across the region.
The funding forms part of Ontario’s Roadmap to Protecting Ontario’s Forest Sector, a 10-year strategy released in April aimed at strengthening the province’s forest industry through innovation, advanced manufacturing and expanded export markets.
Government officials say modernizing facilities such as Daiken’s Huntsville operation will help Ontario remain competitive internationally while encouraging the development of new value-added wood products manufactured in Ontario.
Daiken Corporation, headquartered in Japan, employs about 4,000 people worldwide. Its Huntsville operation will become the North American manufacturing hub for the company’s proprietary laminated wood panel technology.
The latest funding is being provided through Ontario’s Forest Biomass Program, which has committed more than $65 million to 61 projects across the province, leveraging more than $250 million in additional private-sector investment and creating more than 110 jobs, according to the province.
The announcement also highlights the importance of Ontario’s forest sector, which generates nearly $21 billion in annual business revenue and supports close to 155,000 jobs across the province.
“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,” said Gradon Smith, MPP for 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,” added Huntsville Mayor Nancy Alcock.
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