300 workers at Verso Paper mill in Jay to be laid off

The company plans to shut down the No. 1 pulp dryer and No. 2 paper machine at its Androscoggin mill in Jay, reducing its coated paper capacity by about 23 percent. 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.

“Decisions to reduce production capacity are never easy”. That shift is expected to take place in the late 2015 and early 2016.

“One of Verso’s founding principles is to do what’s right for the company as a whole”, said David J. Paterson, president and CEO of Verso, in the release.

Local officials denied a second property tax abatement request from Verso in April, saying the mill failed to prove it deserved a $193.8 million reduction in the value of its mill, according to the Sun Journal. It’s also going to “indefinitely idle” it’s mill in Wickliffe, Kentucky, Central Maine reports.

“[These decisions] are especially hard for the employees and their families who are directly affected by these actions”, Paterson said.

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. The congressional delegation is urging the company to seek assistance from the federal government that would allow workers to receive employment training, help finding a new job and income support.

“Far too many Mainers have lost their livelihoods as a result of increased foreign competition and a decline in demand for paper”, the delegation said in the release.