Project Title:

Development of Atli Chip Market Diversification

Project Organization:

'Namgis Business Development Corporation

Project Investment:

  • Island Coastal Economic Trust: $30,000
  • Total Budget: $60,000

Project Highlight:

‘Namgis Business Development Corporation, through Atli Chip Limited Partnership, is undertaking a structured Market Diversification Exploration Strategy to develop a preliminary business plan for alternative, viable uses of its industrial site and infrastructure following the closure of its wood chip processing operations in March 2026.

The facility’s closure comes as result of broader structural changes in BC’s forest sector, most notable the shutdown of the Domtar Crofton pulp mill. These shifts significantly reduced demand for coastal residual fibre, ultimately rendering the existing business model unsustainable.

Despite this challenge, Atli Chip retains valuable assets, including a fully permitted industrial site, established fibre-handling infrastructure, and access to coastal residue fibre. Together, these strengths provide a solid foundation to explore diversified, value-added opportunities that align with regional economic development priorities and ʼNa̱mǥis economic development goals.

Through this Market Diversification Exploration Strategy, Atli Chip Limited Partnership will explore potential uses for the site and develop a preliminary business plan to support informed decision making and next steps.

The Trust is investing in this project through the Investment Readiness funding program, focusing on the Trust’s priority to develop Regenerative Forestry projects.

Wellbeing Impact

The Trust invests in projects using a Wellbeing Impact Framework that looks beyond traditional economic metrics. This approach evaluates how each investment strengthens economic prosperity, cultural vitality, climate resilience, and social empowerment. By focusing on outcomes that matter to people and place, the Trust works to spur new investments that create meaningful, lasting benefits across Vancouver Island and the coast.

By planning for a value-added bio-based business model, this project supports a circular forest economy that reduces waste and maximizes responsible use of harvested materials, all while engaging the local workforce and reinvesting in the regional economy.

Economic Prosperity 

This project strengthens the local economy by:

  • Enabling the expansion of a major locally-owned business in Northern Vancouver Island
  • Forging four partnerships, including between First Nations and industry

Social Empowerment

The project supports social empowerment with:

  • Two new direct temporary jobs
  • Future employment opportunities that could offset the loss of 25 positions following the closure of the facility
  • Investment in a majority owned First Nations’ business

Climate Resiliency

The project will contribute to climate resiliency by:

  • Processing and utilizing wood waste residuals to divert them from open burning prevents carbon emissions that would otherwise occur
  • Supporting healthier forest ecosystems by improving fibre efficiency and reducing waste
  • Safeguarding forest values by reducing pressure on primary timber resources

Cultural Vitality

The project will strengthen cultural vitality by:

  • Creating opportunities for youth learning and intergenerational knowledge transfer in evolving forest sector operations