Vancouver Island wood chip plant’s closure ‘a difficult moment,’ says CEO

There has been another casualty in B.C.’s forestry industry.

The Atli Wood Chip Plant on northern Vancouver Island says it will be closing next month, impacting more than 20 employees.

The majority First Nations-owned company points to ongoing structural changes affecting the coastal forest sector.

That includes the December announcement of the closure of Domtar’s Pulp Mill in Crofton, which Atli says effectively eliminated the demand for wood chips produced at their facility.

“This is a difficult moment for our employees, their families, and the wider community,” said Jonathan Lok, CEO of Atli Resources, in a statement.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Sign up for breaking National newsletter Sign Up

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

“It’s important to be clear: this decision is not a reflection of our workforce or the North Island. Our people showed professionalism and resilience throughout, and they deserve recognition and respect.”

2:09 Vancouver Island mill closure impacts

B.C.’s Minister of Forests, Ravi Parmar, said the closure of the Alti Chip facility is “truly disappointing.”

“This business decision underscores the pressures our forestry sector has been facing — volatile markets, low pulp prices, shrinking fibre, climate-driven wildfires and punishing duties and tariffs from the U.S. president,” Parmar said.

“These realities show why we must keep driving transformation in this sector, which remains vital to B.C.’s economy.”

Lok said this closure does not represent a withdrawal from the North Island or from forestry.

“The North Island matters deeply to us,” Lok said. “Forestry still matters too—but the system is changing.

“Our responsibility now is to manage this transition properly and to work with the ‘Namgis First Nation, communities, and local leaders to help shape what comes next.”