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Fri, Mar 29, 2024 01:35
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Management Side
Verso gets $1.2M tax incentive for move to Dayton, Ohio

DAYTON, Ohio (From the Dayton Business Journal) -- Verso Corp. has received a tax incentive to pave the way for its move to Dayton.

Verso was approved for a key incentive ahead of a planned consolidation of its Memphis headquarters with its larger Miami Township office. The Ohio Tax Credit Authority voted Monday on a six-year tax incentive worth $1.2 million for the company if it creates the jobs promised in the next three years. Verso will create $11.2 million in new payroll with 46 new full-time positions, and retain its existing $18.5 million in payroll in the Dayton region.

The incentive will help Ohio compete with Tennessee's "historically aggressive" incentives and "less expensive labor force," the TCA said in its statement. Officials fear all 209 Verso jobs could be lost if the company opts to keep its headquarters in Memphis.

The move to Dayton is planned to begin this year and Verso officials said Monday it plans to be finished by the end of the second quarter.

"This job creation tax credit will help Verso in our efforts to reduce costs as we build a stronger, better company for the future," said Kenneth Sawyer, Verso's senior vice president of human resources and communications.

Verso announced in a November earnings call that it would consolidate its Memphis headquarters into its Miami Township office this year, contingent on incentives from Ohio and local governments. About 60 people are based in Memphis and about 200 in Miami Township. Verso took over the local operations when it acquired Miamisburg-based NewPage in 2015.

"Verso's decision to establish its headquarters in Miami Township highlights the best of what our region has to offer," said Jeff Hoagland, president and CEO of the Dayton Development Coalition. "Miami Township and the Dayton region have an experienced workforce, a great business climate, a low cost of living, and a strong logistical advantage."

Verso Corp. works in in printing, specialty papers and pulp and operates seven paper mills around the country. Combined, they have the capacity for 3.1 million tons of paper products. Verso has said the move is a bid to cut expenses, after the $3.12 billion company emerged from Chapter 11 bankruptcy in July.

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