Verso Reduces Magazine Paper Production
Says coated groundwood customers will ‘see no effect’ in business.
Not long after raising rates for several of its paper grades, Verso Paper has announced plans to reduce production of coated groundwood-the most widely-used grades for magazines and catalogues-by 84,000 tons per year.
The reduction is a result of Verso transitioning a paper machine at its mill in Bucksport, Maine to manufacture specialty papers, the company said. The change will be effective September 22.
According to Verso president and CEO Mike Jackson, converting the machine to produce specialty papers provides the company with a “strategic opportunity” to reposition the machine to “achieve its optimal profit potential and strategically falls within our core competencies of producing lightweight and ultra-lightweight products, along with flexible coating capability.”
Verso said its customers whose coated groundwood products are now produced at the Bucksport mill will experience a “seamless transition” as the company will move production to another facility, and will not see any effect from the change.