Verso Announces Permanent Shutdown of Paper Mill in Sartell, MN
“Even in the face of sudden and challenging circumstances, our customers knew they could depend on Verso to deliver high-quality paper products and exceptional customer service,” said Verso Senior Vice President of Sales, Marketing and Product Development Mike Weinhold. “Our team has worked hard to make needed shifts in production and we are meeting our customers’ needs at Verso’s other mills.”
The mill closure will result in an aggregate pre-tax charge to earnings of approximately $114 million, which is expected to occur primarily in the third quarter of 2012. This includes approximately $19 million for severance and benefit costs; approximately $81 million in non-cash charges primarily related to the impairment of property, plant and equipment; and approximately $14 million related to other costs.
“The Sartell Mill has a long and proud history, and we thank all of our employees, the community and the many local and state officials who have partnered with us over the years,” noted Sartell Mill Manager Matt Archambeau. “It’s impossible to put into words how much your support has meant to our company.”
Based in Memphis, TN, Verso Paper Corp. is a leading North American producer of coated papers, including coated groundwood and coated freesheet, and specialty paper products. Verso’s paper products are used primarily in media and marketing applications, including magazines, catalogs and commercial printing applications such as high-end advertising brochures, annual reports and direct-mail advertising.