SAINT HELENS, Ore. -- The Boise Inc. plant in St. Helens will be permanently eliminating pulp manufacturing and approximately 300 employees will lose their jobs, according to a company statement released this week.

The layoffs were expected to begin on December 19th.

Boise Inc. will not only halt pulp mill productions, but reduce paper production, according to Karen Punch, communication Manager.

In a statement, the company's president blamed the move on high costs and declining demand.

“This is an extremely difficult but necessary decision to improve the financial performance of the company, while executing our strategic shift to packaging grades,” said President and CEO Alexander Toeldte.

“Our St. Helens team has achieved some incredible accomplishments since we first declared our need to significantly improve the financial performance of the mill two years ago. Unfortunately, despite the team’s extraordinary innovation and commitment, the decision was primarily a function of declining product demand coupled with continuing high costs, which made it impossible to meet the company’s long-term financial objectives. We will work closely with our customers and suppliers to ensure a smooth transition,” Toeldte added.

Boise expects to employ about 170 employees at the mill after its restructuring.

According to Boise Inc., another mill in Washington is also having large financial problems.

Wayne Powell has been an employee at the St. Helens Boise plant for eleven years. He said he wanted to talk to KGW even if it meant getting in trouble for speaking out.

“I don’t care. I’m going to tell it like it is because this story is… it’s outrageous,” said Powell.

Powell has one year left before retirement and told KGW he’s going to see what happens. He said,”If there’s a lifeboat I will climb on but this is ridiculous.”

Powell said “it’s a matter of corporate getting richer” and he feels sorry for the younger people who have recently been hired on.

The layoffs will not necessarily be based on employee’s tenure, said Karen Punch. In many cases, she said, it will depend on an employee’s capability and knowledge. She said agreement negotiations will be scheduled with the AWPPW Local 1 to determine the impact for union employees.

The town of St. Helens has a population of 12,000 and Boise Inc. is Columbia County’s biggest private employer.

On Monday, the unemployment numbers were released for Oregon showing that 14,000 jobs were lost in October.

The unemployment rate is 7.3% which is up a point from last month and that's almost a point above the national average.