The Verso Corporation has announced plans to temporarily idle its No. 3 paper machine at the Androscoggin Mill in Jay, beginning early next year. The idling of the paper machine will result in the layoffs of 190 employees.
In announcing the layoffs Tuesday morning, the Tennessee-based company says it made the decision as a way to move the entire company toward “sustained profitability.” The move will reduce annual coated paper production by about 200,000 tons.
“It’s really critical to Verso’s long-term success that we balance the supply of our products with our customers’ demand for them,” says company spokesperson Kathy Rowzie, “and the fact is we currently have more coated paper capacity in our mill system than we can fill.”
Rowzie says production will be transferred to lower-cost machines. And if the No. 3 machine is not restarted, Rowzie says the layoffs of nearly 200 workers could become permanent.
Currently the Androscoggin Mill employs about 525 workers. This time last year, layoff notices went out 600 Verso employees at mills in Jay, Maine, and in Kentucky. And in January 2015, Verso closed its Bucksport mill, putting 500 people out of work. But in the case of the Jay mill, Rowzie says Verso is trying to position it for the future.
“We’re optimizing the equipment there and enhancing our process efficiencies, and, importantly, we’re expanding our production for the growing specialties paper market,” she says.
In a written statement, Verso’s senior vice president for sales Michael Weinhold says, “Challenging market conditions have made these types of actions far too frequent in recent years, and they are never easy.”
He says Verso is committed to treating all of its employees with “fairness, dignity and respect.” The human resources team is expected to begin meeting with workers right away.
Meanwhile, the Maine Pulp and Paper Association says the layoffs in Jay are another illustration of an industry in flux as market demands shift.
“Our thoughts are with those whose livelihoods are directly affected,” the association says in an announcement. Even after the layoffs, Verso will continue to serve as one of the area’s largest employers, with more than 350 employees.
