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Management Side
Verso paper mill in Jay, Maine to lay off 190 workers

JAY, Maine (From the Kennebec Journal & Morning Sentinel) -- About 190 employees at the Verso paper mill in Jay will be laid off -- representing one-third of the facility's workforce -- because the financially beleaguered company is idling one of its machines to reduce capacity.

The company, which just emerged from bankruptcy three months ago, said in a release Tuesday morning that the Androscoggin Mill will temporarily idle the No. 3 paper machine, reducing annual coated paper production capacity by about 200,000 tons.

That reduction is scheduled to happen early next year, the company said.

"It's critical to Verso's long-term success that we balance the supply of our products with our customers' demand for them, and we currently have more coated paper capacity in our mill system than we can fill," Michael A. Weinhold, Verso's senior vice president for sales, marketing and product development, said in a statement. "Verso made the decision to temporarily idle the No. 3 paper machine and transition the machine's production to lower-cost machines in our manufacturing system to help us stay ahead of the curve and move the entire company toward sustained profitability. At the same time, we are positioning the mill for future success by optimizing equipment, enhancing process efficiency and expanding production for the growing specialty papers market."

If the No. 3 machine is not restarted following the temporary reduction, then the affected jobs will likely be eliminated, the company said.

"Challenging market conditions have made these types of actions far too frequent in recent years, and they are never easy," Weinhold said. "They are especially difficult for the employees and their families who are directly affected. 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."

Weinhold said the company's human resources staff would immediately start meeting with affected employees.

The announced layoffs come on top of 300 layoffs at the mill that started about a year ago. Verso Corp., based in Memphis, Tennessee, said in a news release last year that it would shut down a pulp dryer and paper machine at the mill in order to reduce production capacity and "indefinitely idle" its mill in Wickliffe, Kentucky, laying off 310 employees there.

Verso, which employs more than 560 at its mill in Jay, filed for Chapter 11 protection in January to clear $2.4 billion in debt and it emerged from bankruptcy in July with a new plan.


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