Company kills plans for Squamish chip plant

Residents of Squamish have won their fight to stop the construction of a wood chip facility adjacent to the downtown area.

Following a raucous public hearing earlier this week, Howe Sound Pulp and Paper has pulled the plug on the deal.

Company President Russell Fulton says they had to make a decision. "We've accepted an offer at another location, that was more immediate, " he says. "With the constant delays, we really couldn't see where the end would be."

Fulton won't reveal where the plant will now go.

Squamish Mayor Corrine Lonsdale says moving the plant is a big loss for the community. "I'm sickened that we weren't able to see the process through until the end," she says.

In depth: Colliding Visions: From Sea to Sky

Many residents and local businesses were opposed to the storage facility's location, saying it would create noise and pollution in the area.

The company had argued that Squamish needed the plant to prevent it from becoming a bedroom community for Vancouver and Whistler.

The proposed facility would have taken in wood chips, stored them and then sent them out to pulp mills.