Verso Has No Plans in Place Yet for Duluth Paper Mill

SEATTLE (Scrap Monster): Verso Corporation has no hopes of resuming production at the idled Duluth paper mill any time soon.

During an earnings call with investors and industry analysts, Adam St. John, President and CEO, Verso noted that the market for graphic supercalendered paper has been witnessing huge collapse, especially during the pandemic period, due to increased shift in business from print to online. The shutting down of Duluth and Wisconsin Rapids mills should help the company to run its other two mills in Escanaba and Quinnesec at elevated capacities, he added.

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The future of the Duluth mill remains uncertain. The company is exploring several options for the mill’s rescue. The first option is to restart the mill operations, in case the market conditions show significant improvement. The second option is to sell the mill, for which it has already engaged an advisor. The final option is to close it permanently. The company is currently pursuing all options to avoid permanent closure of the facility. As per estimates, an investment of not less than $35 million would be required to bring the mill back into operation.

Verso Corp. has long been planning to shift production to kraft paper packaging materials.