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First Nations-owned Vancouver Island wood chip plant set to close in March

The Atli Chip LP plant, co-owned by the ʼNamgis First Nation, will close due to lost demand after Domtar’s Crofton mill shutdown; it supported 25 to 30 full-time jobs.

  • On Jan. 22, 2026, Atli Resources chief executive Jonathan Lok announced the Atli Chip LP will close in March due to ongoing structural changes affecting British Columbia's coastal forest sector.
  • Last month, Domtar announced the Crofton pulp mill closure, which Atli says effectively eliminated demand for Beaver Cove wood chips.
  • The majority‑First‑Nation‑owned plant, acquired with provincial funding and federal support, created 25 to 30 full-time jobs, Domtar said.
  • The provincial Ministry of Forests did not immediately respond, while North Island‑Powell River Conservative member of Parliament Aaron Gunn called the closure `heartbreaking` and said he was `angry` about job losses, criticizing the B.C. New Democrat government.
  • Atli says the shutdown is `a necessary pause` not an exit and will work with the ’Namgis First Nation, local communities and leaders on a `responsible transition`, noting the Crofton mill employed about 350 workers.
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The Hamilton Spectator broke the news in Hamilton, Canada on Thursday, January 22, 2026.
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