Vancouver Island Wood Chip Plant Closure Poses Challenge, CEO States
The Atli Wood Chip Plant, located on northern Vancouver Island, is set to close next month, affecting over 20 employees. This plant, predominantly owned by First Nations, has cited ongoing structural changes in the coastal forest sector as the main reason for its shutdown.
Factors Leading to Closure
One significant development impacting the plant’s operations was the recent closure of Domtar’s Pulp Mill in Crofton, announced in December. This closure diminished the demand for wood chips produced by Atli.
CEO’s Statement
Jonathan Lok, CEO of Atli Resources, expressed concern for the employees and their families. He emphasized that the decision to close was not a reflection of the workforce’s performance. “Our employees have shown professionalism and resilience. They deserve recognition and respect,” Lok stated.
Broader Industry Challenges
B.C.’s Minister of Forests, Ravi Parmar, shared his disappointment regarding the closure. He pointed out the various pressures facing the forestry industry, including:
- Volatile markets
- Low pulp prices
- Shrinking fiber availability
- Climate-driven wildfires
- Duties and tariffs from the U.S.
Parmar noted that these factors underscore the urgent need for transformation within B.C.’s forestry sector, which remains crucial to the province’s economy.
Future Steps
Lok reassured that the closure does not signify a departure from forestry or the North Island. “The North Island is important to us, and so is forestry,” he remarked. He highlighted the company’s commitment to properly manage the transition in collaboration with the ‘Namgis First Nation and local leaders.
