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Verso to close Luke woodfree coated paper mill

02 May 2019 − 

Verso Corporation is reacting to the structural decline in graphic paper demand. The company plans to close down its Luke mill in the eastern USA, making 675 jobs redundant.

US paper producer Verso Corporation will take 450,000 sh.t (408,000 t) of woodfree coated paper capacity from the global market. The company announced it was planning to permanently close down its US paper mill in Luke, Maryland. The closure is expected to be complete by the end of June of this year. Approximately 675 employees will be affected.

The decision was taken in response to the continuing decline in customer demand for woodfree coated paper, along with rising input costs and a significant influx of imports, says Verso. The site is said to have struggled with profitability for several years. Verso added it had explored the possibility of producing other paper grades in Luke, but there could not be found a way to make the mill profitable.

Verso describes itself as a leading US producer of specialty and graphic papers, packaging and pulp. The closure of the Luke mill will reduce Vero's annual paper capacity to around 2.7 million sh.t (2.5 million t).

This is an excerpt of our article on Vero Paper. Find the full article in EUWID Pulp and Paper issue no 19/2019, which will be available to our e-paper and print subscribers as of 8 May.

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