Wood Chip Plant Closure Marks Tough Times for Northern Vancouver Island
A wood chip processing facility in northern Vancouver Island is set to close in March, marking a challenging period for the local economy. The Atli Chip LP plant, situated in Beaver Cove on ‘Namgis First Nation land south of Port McNeill, will impact nine employees and approximately ten contractors, along with several other suppliers. This closure follows the late 2022 shutdown of the Crofton Pulp Mill by forestry company Domtar, which significantly affected Atli Chip’s operations.
Closure Announcement and Impact
The announcement of the Beaver Cove facility’s closure stems from the ripple effects of the Crofton pulp mill shutdown. Domtar’s decision, made in December 2022, has drastically altered the supply chain for wood fiber along the British Columbia coast. Atli Chip LP indicated that this closure has effectively eliminated the market for their wood chip processing services.
Company Statement and Future Plans
Atli Resources CEO Jonathan Lok emphasized the difficult circumstances surrounding this decision. He stated, “This is a difficult moment for our employees, their families, and the wider community.” The company is committed to ensuring a respectful transition for its staff and has not ruled out the possibility of repurposing the facility instead of decommissioning it entirely. This transition may take time, but efforts are underway to explore future opportunities.
Community Response and Support
The closure has raised concerns within the local community. North Island-Powell River MP Aaron Gunn expressed his sorrow over the situation, describing it as “heartbreaking.” He acknowledged the timing of the announcement, occurring shortly after the holiday season, which would further impact the affected employees.
Looking Ahead
Despite the closure, Atli Chip LP maintains that this decision does not signify a withdrawal from the North Island or the forestry sector. The company is focused on fostering economic resilience and plans to collaborate with the ‘Namgis First Nation and local communities on future initiatives. Lok added, “This is a necessary pause—not an exit,” affirming the company’s commitment to viable future prospects for the region.
