Verso Corp. Receives Tax Credit of $1.2M for Move to Miamisburg, Ohio
Verso Corp., a leading North American producer of printing papers, specialty papers and pulp, was approved for a six-year $1.2M tax incentive by the Ohio Tax Credit Authority, ahead of a move that consolidates its Memphis, Tenn., headquarters with its larger Miamisburg, Ohio, facility. Verso officials said that the move should be completed by the end of the second quarter, reported the Dayton Business Journal.
Under the terms of the incentive, the Business Journal revealed that Verso must create the jobs promised in the next three years — $11.2 million in new payroll with 46 new full-time positions, and retain its existing $18.5 million in payroll in the Dayton region. Verso would also be able to claim a tax credit for the new jobs it creates.
According to a statement released from the Ohio Tax Credit Authority, the tax incentive will now allow Ohio to be able to compete with Tennessee's "historically aggressive" incentives and "less expensive labor force."
“This job creation tax credit will help Verso in our efforts to reduce costs as we build a stronger, better company for the future,” said Kenneth Sawyer, Verso’s senior VP of human resources and communications.
If Verso does not carry out with the move and decides to stay headquartered in Memphis, officials fear that it could result in the loss of 209 jobs, reported the Journal. This planned consolidation, along with a strategic business unit organization and an expense reduction project, was announced in a press release from Verso in November.
Verso has about 60 employees in Memphis and more than 200 employees in Miamisburg. Verso acquired Miamisburg-based NewPage in 2015. The company operates seven manufacturing facilities in the U.S. As of 2016, the company's mills have a total annual paper production capacity of approximately 3.2 million tons of paper and the company reported $3.1 billion in net sales. Verso and its subsidiaries emerged from bankruptcy in July.
“This decision by Verso came about in part because of the relationship that we and the region worked to develop with Verso and we continue to be proactive in engaging with our business community to facilitate these types of decisions,” relayed Miami Township Trustee Doug Barry.