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Verso announces investment in No. 4 machine

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Verso Paper Corporation’s Androscoggin Mill in Jay.

JAY – Verso Corporation has announced that it intends to invest in the Androscoggin Mill over the next 18 months, focusing on the production of release liner paper at its No. 4 machine.

In a statement released Wednesday, the company said that the investments would be over the course of two project phases, with the first completing in the third quarter of 2018 and the second completing in 2019. Technological upgrades will be made to the No. 4 machine’s pulping and refining systems, stock flow piping and paper winding capabilities.

The goal of the upgrades is to increase the capacity of the machine to produce release liner paper, a specialized paper product coated to prevent adhesives from sticking. It’s used for labels, stickers and other products, allowing them to be peeled and applied without degrading the adhesive.

Mike Weinhold, the Verso president of graphic papers, said the upgrade was part of an effort to reposition the Androscoggin Mill’s production to meet the specialty paper market.

“The Androscoggin Mill and its No. 4 paper machine have a rich history of manufacturing specialty products,” Weinhold said as part of the statement. “When enhanced with these technology upgrades, the No. 4 paper machine’s six-meter width, technical capabilities and fully integrated pulp platform will be particularly well suited to support the growing release liner market.”

The cost of the improvements to the No. 4 machine was not included in Wednesday’s statement. It was also not stated if the upgrade will result in new jobs.

It is the second announcement about an investment in the Androscoggin mill this year. In February, Verso announced that it would be upgrading and reopening the mill’s No. 3 machine and its associated pulp line to manufacture packaging products, increasing total production capacity by approximately 200,000 tons. That $17 million investment, $4 million of which was provided by a  challenge grant administered by the Maine Technology Institute, resulted in the mill adding 120 jobs. The No. 3 machine and its associated equipment had been previously idled and eventually shut down in 2017, resulting in the elimination of 190 positions.

Wednesday’s news comes at the heels of last week’s announcement by the U.S. Department of Commerce that Verso’s request to retroactively revoke duties on Canadian supercalendered paper imports – glossy paper used for magazines – had been granted. That allowed a settlement between U.S. and Canadian paper industries relating to the imposition of duties on those imports back in 2015 to proceed. Per a March 20 filing with the U.S. Securities and Exchange Commission, the settlement included Port Hawkesbury Paper Limited Partnership and Irving Paper Limited paying Verso a percentage of the duties that would have been imposed, capped at $42 million.

Sen. Susan Collins said last week that the Department of Commerce decision and ensuing settlement could lead to greater investment in the Jay mill.

“I commend the Canadians and Verso for their good faith negotiations, which will help ensure a bright future for Verso and the Jay mill, leading to greater investment and ultimately the creation of more jobs,” Collins said in a statement released on July 13.

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