Verso indefinitely idling Duluth paper mill, putting 235 out work
DULUTH – Verso Corp. is idling its Duluth paper mill indefinitely, putting 235 employees out of work and placing the future of the mill in question.
The Ohio-based company will also close its Wisconsin Rapids plant and will be “exploring viable and sustainable alternatives for both mills, including restarting if market conditions improve, marketing for sale or closing permanently,” the company said in a news release Tuesday morning.
The Duluth mill will be idled by the end of the month and the Wisconsin Rapids plant by the end of July, with 1,000 total employees losing their jobs.
“Decisions to idle facilities are always difficult because they impact employees, their families, and communities,” CEO Adam St. John said in a statement. “Verso is committed to treating all of our affected employees with fairness and respect.”
The Duluth mill opened in 1987 and was bought by Verso in 2015. The company emerged from bankruptcy proceedings in 2016.
Verso had been looking for $2 million in state support to upgrade the Duluth mill in order to remain open as the price of the mill’s products had dropped about $150 per ton in recent years.
The mill can produce about 270,000 tons of graphic and recycled kraft paper per year.
“Verso’s decision to reduce its production capacity was driven by the accelerated decline in printing and writing paper demand resulting from the COVID-19 pandemic,
” the company said in a Securities and Exchange Commission filing. “The stay-at-home orders have significantly reduced the use of print advertising in various industries, including retail, sports, entertainment and tourism.”
source https://unv2news.blogspot.com/2020/06/verso-indefinitely-idling-duluth-paper.html
