Boise Inc. officials late Tuesday afternoon said they intend to shut down operations at the St. Helens pulp and paper mill by the end of the year, effectively ending all Boise Inc. operations there and resulting in the layoff of 106 employees.

Boise Inc. spokeswoman Karen Blanchard said employee notifications started Tuesday. The company said eligible employees would be offered severance packages and outplacement assistance.

The shutdown involves the last remaining paper machine, called H2, which is used in the manufacture of flexible packaging for food products and printing grades of free sheet paper. The decision to halt operations cuts Boise Inc.’s annual capacity by 60,000 tons.

Blanchard said Boise Inc.’s production at the St. Helens mill has been challenging since November 2009, when four machines were permanently shuttered and 300 employees were laid off. There were bright spots, she said, including employee performance. Ultimately, however, decreasing demand for product prompted the shutdown.

“Over the long term, we just haven’t been profitable,” she said. She added that most of the paper grades produced at the mill are being phased out companywide.

Cascades Tissue Group, which maintains a paper machine at the mill separate from Boise Inc.’s ownership, remains operational. Boise Inc. intends to explore options for the inactive portions of the mill, according to a released statement.

The Spotlight learned of the decision as it went to press Tuesday afternoon.