Verso to lay off 300 at Jay mill
Verso Corp. said Thursday it plans to permanently eliminate about 300 jobs at its Androscoggin Mill in Jay and lay off an additional 310 at another mill in Kentucky.
The Memphis, Tenn.-based company said in its Thursday announcement that a declining demand in North American coated paper and high energy and operating costs in Maine were among the factors that led to the company’s decision. The company said the “optimization efforts” will take place during the fourth quarter of 2015 and first quarter of 2016.
“One of Verso’s founding principles is to do what’s right for the company as a whole,” Verso CEO David Paterson said in a statement. “This includes maintaining a balance between Verso’s supply of products and our customers’ demand for them. Remaining true to this principle, and after a comprehensive review of our assets, inventory and demand forecasts, Verso has decided to make significant reductions in our coated paper and pulp production capacity…”
The layoffs are part of Verso’s plan to shut down the Jay mill’s No. 1 pulp dryer and No. 2 paper machine, reducing its production capacity by 150,000 tons of coasted paper and 100,000 tons of dried market pulp. The company said it will also “optimize the mill’s pulp, power and recovery assets” to help offset high energy costs and other operating expenses.
Verso said it plans to indefinitely idle its mill in Wickliffe, Ky., resulting in the layoff of approximately 310 employees and further reducing its production capacity of coated paper and dry pulp.
“Decisions to reduce production capacity are never easy,” Paterson said. “They are especially difficult for the employees and their families who are directly affected by these actions. Verso is committed to treating all of our impacted employees with fairness, dignity and respect and to communicating openly and honestly with each individual about how this decision will affect him or her.”
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