BACKGROUND: Atli Chip plant in Beaver Cove to close in March
The Atli chip plant in Beaver Cove will close in March, significantly affecting its workers and their families.
Atli Resources CEO Jonathan Lok, whose company is the majority owner, said the 10 direct employees at the facility, as well as contractors and tertiary suppliers, will feel the impact of the closure.
“We’ve been working with the North Island Employment Foundation Society, WorkBC and Service Canada to ensure that many of the conventional employee supports during times of transition are available and shared with employees,” Lok said. “They’ve all been very supportive. I can’t say enough good things about those various government agencies.”
Atli Chip LP said the closure follows structural changes in B.C.’s coastal forest sector, including last month’s announcement of the shutdown of the Domtar Crofton pulp mill, which eliminated the plant’s primary market for wood chips.
The company said those changes made continued operations unsustainable. Lok said the mill was established more than two decades ago and was designed as a cogeneration plant but was later used as an occasional chipping facility as forestry practices evolved.
He said it was about five years ago that Atli Resources partnered with Domtar and Wahkash Contracting to purchase the operation.
Lok said the company is focused on determining next steps.
“We need to do right by our staff. We want to ensure our place in this community and not drag something out during this uncertain time. It’s bad news, but we don’t think it’s the end of the road by any means,” he said.
He added the company continues to explore future options.
“The future is murky, but we do believe there is a future.”
