Oregon toilet paper factory will close, laying off dozens

May 05, 2024

The Scappoose plant opened six years ago, aided by nearly $13 million in tax incentives.

A toilet paper factory in Columbia County will close this summer and another will cut production sharply as the plants’ Canadian owner consolidates operations at sites it says perform better.

Cascades Inc. notified state officials Tuesday that it will lay off 88 at a plant in Scappoose beginning July 28. It will also close one of two production lines at a factory in nearby St. Helens but Cascades said it hasn’t determined how many will lose their jobs at that location. The company employs close to 120 there.

Cascades, based in Quebec, said the facilities are “underperforming” and that production will shift to other Cascades sites. A third factory in South Carolina will close, too. Cascades said it will eliminate 300 jobs altogether.

Cascades said it expects the closures will cost between $20 million and $25 million across the three sites, including severance payments. It said it will offer to relocate some employees to other locations.

“With fewer sites, better resource allocation, and a strong business strategy, we believe this decision will position Cascades to create more value for its shareholders and customers,” CEO Mario Plourde said in a written statement.

Cascades opened the Scappoose factory in 2017, aided by tax incentives state officials valued at $12.7 million over five years.

The company met the conditions for two strategic reserve fund grants, according to Business Oregon, the state’s economic development agency. The company also received property tax breaks through Oregon’s enterprise zone program and it wasn’t immediately clear if the plant’s closing in Scappoose will impact the property’s future tax liability.

Columbia County’s jobless rate was 4.9% last March, slightly above the statewide rate.

Oregon manufacturing employment has been slower to recover from the pandemic recession than other parts of the state economy. Oregon has about 196,000 factory jobs, down from about 199,000 in 2019.

-- Mike Rogoway | [email protected] | 503-294-7699

Update: This article has been updated with additional detail about Cascades’ tax incentives.

Correction: A St. Helens toilet paper plant will remain open with one production machine running instead of two. This article previously indicated that plant would close.

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