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Verso Paper Corp. Announces Permanent Shutdown Of Sartell Mill


Thursday, 2 Aug 2012 05:00pm EDT 

Verso Paper Corp. announced that after conducting a comprehensive assessment, Verso has made the difficult decision not to reopen its paper mill in Sartell, Minnesota. Verso’s decision is based on the length of time that it would take to rebuild the mill structures and systems that were destroyed in the Memorial Day fire and explosion, and the marketplace challenges that would present. The permanent closure of the Sartell Mill will reduce Verso’s annual coated groundwood capacity by 180,000 tons or approximately 20%, and will eliminate approximately 35,000 tons of annual supercalendered paper capacity. 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 severance and other shutdown costs require the outlay of cash, which is expected to occur primarily in the third quarter of 2012. Settlement negotiations regarding this loss claim with our insurance carrier are continuing and The Company expect resolution in the coming months. 

Company Quote

2.5
-0.08 -3.10%
11 Jul 2014