The Atli Chip plant in Beaver Cove, near Port McNeill, will close its wood chip processing operations in March.
The company said the closure follows structural changes in B.C.’s coastal forest sector, including December’s announcement of the shutdown of the Domtar Crofton pulp mill, which eliminated the plant’s primary market for wood chips. Atli Chip LP said these changes made continued operations unsustainable.
CEO Jonathan Lok, whose company Atli Resources is the majority shareholder, said the decision is not a reflection on the workforce or the North Island community. He praised employees for their professionalism and resilience.
“This is a difficult moment for our employees, their families and the wider community,” Lok said in a media release. “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.”
The company said it is working directly with affected staff to provide advance notice and support and to ensure full regulatory compliance during the transition.
Atli Chip LP emphasized it is not leaving the North Island. Atli Resources, Wahkash Contracting and Domtar remain committed to the region and the long-term health of B.C.’s forest economy.
Lok said the company is exploring future opportunities for the Beaver Cove site, including alternative uses, Indigenous partnerships and diversification initiatives. “This is a necessary pause—not an exit,” he said. “We remain focused on responsible transition today and on building resilient, future-oriented opportunities for the North Island tomorrow.”
