BUCKSPORT – Verso Paper Corp. says 125 jobs will be cut when it permanently shuts down a paper machine at its mill in Bucksport.
Verso announced Tuesday that it is shutting down its No. 2 coated groundwood paper machine on Oct. 23. The mill currently runs four paper machines and has more than 700 employees.
The Memphis-based company is shutting down two paper machines at its mill in Sartell, Minn., resulting in 175 job cuts.
Verso officials say demand for coated groundwood papers – used in products such as magazines and catalogs — has been falling. President and CEO Mike Jackson said shutting down the machine in Bucksport will match supply with demand.
At the same time, materials prices have continued to rise, driving up the operating costs, Jackson added.
The paper machine shutdowns will result in pre-tax charge to earnings of about $22 million, which Verso expects to book primarily in the fourth quarter. That includes about $13 million for severance and benefit costs, among other costs.
Verso’s other Maine mill, in Jay, is not affected by Tuesday’s announcement.
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