That facility is reducing production, shutting down a pulp dryer and paper machine.
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Coated paper demand was down 4.7 percent in the first half of the year after steady declines in 2014 and 2013, the company said, citing statistics from the Pulp and Paper Products Council.
The shutdown of the two machines at the Androscoggin Mill will reduce Verso’s production capacity by 150,000 tons of coated paper and 100,000 tons of dried market pulp, resulting in the permanent elimination of 300 jobs. Verso does not have sufficient information at this time to estimate the cash costs and noncash charges resulting from the optimization of the Androscoggin mill’s pulp, power and recovery assets.
The letter obtained by WPSD says they are idling the plant to reduce production capacity. That shift is expected to take place in the late 2015 and early 2016.
After closing the local paper mill last December and laying off more than 500 employees, Verso Paper Corp.is dramatically downsizing its remaining operations in Maine and elsewhere.
The company’s human resources department soon will be meeting with affected workers.
Verso officials said the company intends to regain compliance with the NYSE’s continued listing standard by bringing the share price and the average share price of Verso’s common stock back to at least $1 by December 24, within the required six-month period after receipt of the NYSE notification.
A second mill in Androscoggin, Maine will be completely shut down.
Maine’s congressional delegation released a joint statement on the layoffs Thursday morning, with Sen.
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The delegation urged Verso to file a petition for federal Trade Adjustment Assistance. “We stand ready to help hardworking Mainers who are affected by this announcement”.
