Willamette Falls Paper Company announces 'mass layoffs,' possible closure

PORTLAND, Ore. (KOIN) – A West Linn paper mill is laying off over half of its workforce and is facing a possible shut down at the end of August if the company doesn't get a financial boost or a buyer, the company announced Tuesday.

Willamette Falls Paper Company President Brian Konen sent a letter on Aug. 6 to West Linn Mayor Rory Bialostosky and Oregon's Office of Workforce Investments announcing the company's plans, per the Workers' Adjustment Retraining Act.

In the letter, Konen warned the company is laying off 158 of its 223 employees, noting there is no union representation at the plant and there are no opportunities to transfer or reassign employees elsewhere.

According to the letter, the "mass layoff" will occur around Aug. 9 and the company may shut down the plant on Aug. 30 unless they receive a capital raise or a sale of assets.

In the meantime, Konen said the company is suspending work on all orders for “an uncertain period of time."

The letter stated the company provided layoff notices to affected employees on Tuesday, noting this was “as soon as practicable” under the circumstances.

“We believe our circumstances fall within one of the exceptions to the 60-day notice requirement of the WARN Act. Willamette Falls Paper Company, Inc. has hired an investment banker who is actively seeking capital or trying to arrange for the sale of substantially all of the company’s assets and business operations. The Company reasonably in good faith believes that advance notice would have precluded its ability to obtain such capital, which would have allowed the Company to avoid or postpone a shutdown for a reasonable period,” the letter said.

Konen said the company is hopeful this is a temporary layoff and hope to find a buyer to continue the plant's operations and hire back affected employees, but if the company is unable to meet this goal, the mass layoffs will be permanent, and the plant will shutter.

According to the letter, the company will decide whether to shut down no later than Aug. 30, with additional layoffs expected throughout the month if the company is unable to get a buyer or raise more money.

A majority of the affected positions are production and operations jobs, which will see 102 layoffs, followed by 25 millwrights, 14 administrative positions, and several electricians and truck drivers.

This is a developing story.