MIAMISBURG, Ohio, July 19, 2017 /PRNewswire/ -- Verso Corporation
(NYSE: VRS) today announced plans to permanently shut down the No.
3 paper machine and associated equipment at its Androscoggin Mill
in Jay, Maine, reducing annual
coated paper production capacity at the mill by approximately
200,000 tons. The shutdown will be effective August 1 and is expected to be complete by the
end of the third quarter of 2017. The No. 3 paper machine and
a recovery boiler and digester that support it were idled in
January of this year in response to declining customer demand that
resulted in more coated paper capacity than could be filled.
Most products made on the No. 3 paper machine were transitioned to
lower-cost machines in other Verso mills.
"Verso is leaving no stone unturned in our efforts to move the
company toward sustained profitability in a market where customer
demand for our graphic paper products continues to decline," said
Verso Chief Executive Officer B.
Christopher DiSantis. "Consistently matching the
supply of our graphic paper products with customer demand for them,
dramatically reducing our costs and rapidly diversifying our
product portfolio into growing markets are essential keys to
Verso's future success, and we're relentlessly pursuing all three
across the company. Although the footprint of the
Androscoggin Mill is getting smaller, we continue to take steps to
position the facility as a leading producer for the growing
specialty papers market."
The permanent shutdown of the No. 3 paper machine and associated
equipment will impact approximately 120 employees at the
Androscoggin Mill. Employees affected by the shutdown will
receive severance in accordance with Verso's severance policy and
Maine state law.
Verso's Human Resources team will immediately begin scheduling
individual meetings with these employees to provide support and
detailed information on severance and related issues.
"While permanently closing this capacity is the right strategic
decision for Verso as a whole, we are mindful of the effects this
action will have on the people at the Androscoggin Mill who are
directly affected, and we are committed to treating them with
fairness, dignity and respect during this difficult time," DiSantis
said. "On behalf of the entire Verso team, I want to express
our sincere thanks and appreciation to them for their dedicated
service and many contributions to the mill and to our company."
About Verso
Verso Corporation is the turn-to company for those looking to
successfully navigate the complexities of paper sourcing and
performance. The leading North American producer of printing
and specialty papers and pulp, Verso provides insightful solutions
that help drive improved customer efficiency, productivity, brand
awareness and business results. Verso's long-standing
reputation for quality and reliability is directly tied to our
vision to be a company with passion that is respected and trusted
by all. Verso's passion is rooted in ethical business
practices that demand safe workplaces for our employees and
sustainable wood sourcing for our products. This passion,
combined with our flexible manufacturing capabilities and an
unmatched commitment to product performance, delivery and service,
make Verso a preferred choice among commercial printers, paper
merchants and brokers, converters, publishers and other end
users. For more information, visit us online at
versoco.com.
Forward-Looking Statements
In this press release, all statements that are not purely
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements may be identified by the
words "believe," "expect," "anticipate," "project," "plan,"
"estimate," "intend" and other similar expressions.
Forward-looking statements are based on currently available
business, economic, financial and other information and reflect
management's current beliefs, expectations and views with respect
to future developments and their potential effects on Verso and
include the statement regarding the expected timing of completion
for the shutdown of the No. 3 paper machine and associated
equipment at the Androscoggin Mill. Actual results could vary
materially depending on risks and uncertainties that may affect
Verso and its business. For a discussion of such risks and
uncertainties, please refer to Verso's filings with the Securities
and Exchange Commission. Verso assumes no obligation to
update any forward-looking statement made in this press release to
reflect subsequent events or circumstances or actual outcomes.
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SOURCE Verso Corporation