Blames declining demand for CFS

ON APRIL 30, MIAMISBURG, OH-based Verso Corp. announced the permanent closure of its paper mill in Luke, MD, in response to the continuing decline in customer demand for the grades of coated freesheet paper (CFS) produced there. Other challenges include rising input costs, a significant influx of imports and rising compliance costs and infrastructure challenges associated with recent environmental regulation changes.

Verso said the mill has struggled with profitability for a number of years.

The closure, expected to be complete by June 30, will reduce Verso’s CFS capacity by about 450,000 tons and bring its total annual paper production capacity to about 2.7 million tons.

Most of Luke’s paper grades can be produced on other Verso machines and it is working to assure all customer needs are met.

About 675 employees will be affected. The mill has been in operation for more than 130 years.

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