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Verso Corporation

From Wikipedia, the free encyclopedia
Verso Corporation
IndustryPulp and Paper
Founded2006; 18 years ago (2006)
Successor Billerud North America
Headquarters
Miamisburg, Ohio
,
United States
Key people
Robert A. Kreizenbeck
Productspulp, paper and process industries
Number of employees
1700 (2021)
ParentBillerud AB
Websitewww.billerud.com

Verso Corporation, now Billerud Americas Corporation, was a North American producer of coated papers including coated groundwood, coated freesheet, and specialty products. The company restructured in 2016 following Chapter 11 bankruptcy. Verso Corporation operated two paper mills in the U.S. In 2021, the company had approximately 1,700 employees.[1]

In March 2022, the Swedish company BillerudKorsnäs completed its acquisition of Verso for $825m.[2]

History

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The company was formed in August 2006 when Apollo Global Management purchased the coated and supercalendered paper business from International Paper.[3][4] In April 2008, Verso conducted an initial public offering and was listed on the New York Stock Exchange.[5] In January 2015, Verso completed its acquisition of NewPage Holdings.[6]

In 2008, Verso received the Environmental and Energy Achievement Award from the American Forest and Paper Association for its work with the Bucksport Environmental Innovation Partnership.[7]

In 2010, Verso received the Sustainable Forestry Initiative (SFI) President's Award for its partnership efforts to promote sustainable forest management principles and initiatives in Maine.[8]

In 2015, Verso Paper's Quinnesec Mill was awarded the Michigan Voluntary Protection Program (MVPP) Star award by the Michigan Occupational Safety and Health Administration (MIOSHA) for the fifth time.[9]

Verso Corporation filed for Chapter 11 bankruptcy on January 26, 2016.[10] Six months later, the company emerged from bankruptcy after restructuring and reducing its debt by $2.4 billion.[11] As of January 2017, the company moved its headquarters from Memphis, Tennessee to Miamisburg, Ohio in a consolidation of offices as the company set a goal of reducing its overhead expenses by 10% annually.[12]

In January 2017, B. Christopher DiSantis was appointed as chief executive officer (CEO) and a director of Verso effective as of February 1, 2017.[12][13] DiSantis resigned in April 2019 and Leslie Lederer was appointed as interim CEO.[14] At the end of April 2019, Verso gave two months notice of the impending closure of its mill in Luke, Maryland.[15]

On June 9, 2020, Verso announced a plan to idle its US paper mills in Wisconsin Rapids, Wisconsin and Duluth, Minnesota indefinitely by late July 2020. The closure was due to the decline in demand for graphic paper and reduced use of print advertising in various industries during the coronavirus pandemic.[16] According to the company, a small number of employees will be kept on afterwards for an unknown time until remaining stock is sold. Between the two paper mills, about 1,000 employees are expected to be laid off, with 900 of those at the Wisconsin Rapids Mill.[17] In January 2021, Verso announced that it no longer planned on restarting its paper mill in Duluth, citing a decrease in demand as a result of the Covid-19 pandemic.[18]

In April 2021, Verso reached a settlement over lawsuits regarding pollution in the Potomac River from the defunct Luke Paper Mill. As part of the settlement, Verso agreed to identify the sources and extent of the contamination and create a comprehensive plan to clean it, as well as pay $650,000 to the state of Maryland.[19]

In December 2021, Swedish pulp and paper company BillerudKorsnäs announced a takeover of Verso, which was completed in 2022. [20]

In January 2022, The state of Michigan announced a $244,451 settlement with Verso Corporation over national pollutant discharge elimination system violations at the company’s Escanaba Paper Mill [21] which resulted in fish being killed in the Escanaba River downstream of the mill.

References

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  1. ^ "Verso to be acquired by BillerudKorsnäs AB". Recycling Today. Retrieved 2022-11-19.
  2. ^ "BillerudKorsnäs acquires coated paper producer Verso for $825m". Packaging Gateway. 2022-04-01. Retrieved 2022-04-03.
  3. ^ "International Paper to Sell Unit for $1.4 Billion". Los Angeles Times. June 6, 2006. Retrieved May 6, 2019.
  4. ^ Brickley, Peg (January 26, 2016). "Verso Corp. Files for Chapter 11 Bankruptcy Protection". The Wall Street Journal. Retrieved May 6, 2019.
  5. ^ "Verso sets I.P.O. range". The New York Times. April 29, 2008. Retrieved May 6, 2019.
  6. ^ "Verso Corp. Completes Its Acquisition of NewPage, Will Report $3.5B in Annual Sales". Printing Impressions. January 7, 2015. Retrieved May 6, 2019.
  7. ^ "Verso Paper Receives Environmental Award". Green Atom. July 15, 2008.
  8. ^ "Verso Paper Receives Award". Print+Promo. September 28, 2010.
  9. ^ Wil Hunter (December 23, 2015). "Verso Paper Corp. Quinnesec Mill receives Michigan's most prestigious worker safety and health award". Upmatters.
  10. ^ Brickley, Peg (January 26, 2016). "Verso Corp. files for bankruptcy". MarketWatch. Retrieved May 5, 2016.
  11. ^ "Verso Successfully Emerges from Bankruptcy" (Press release). Verso Corporation. PR Newswire. July 15, 2016. Retrieved May 6, 2019.
  12. ^ a b Dries, Bill (January 13, 2017). "Verso Names New CEO". Memphis Daily News. Retrieved May 6, 2019.
  13. ^ "Verso Corporation Names B. Christopher DiSantis as CEO" (Press release). Verso Corporation. PR Newswire. Retrieved May 6, 2019.
  14. ^ Stephens, Caleb (April 15, 2019). "CEO of one of Dayton's top companies steps down". Dayton Business Journal. Retrieved May 6, 2019.
  15. ^ "Verso Announces Closure of Paper Mill in Luke, Maryland" (Press release). Verso Corporation. PR Newswire. April 30, 2019. Retrieved May 6, 2019. Verso Corporation (NYSE: VRS) today announced it will permanently close its paper mill in Luke, Maryland...
  16. ^ "Verso announces closure of Wisconsin Rapids mill". WAOW News 9. June 9, 2020.
  17. ^ "Verso announces closure of Wisconsin Rapids mill". WAOW News 9. June 9, 2020.
  18. ^ Fisher, Jacob (27 January 2021). "Dayton papermaker says it will not restart $75M out-of-state mill". Dayton Business Journal. Retrieved 25 April 2021.
  19. ^ Mattu, Rohan (1 April 2021). "Luke paper mill owner Verso Corp. to clean up toxic 'black liquor' pollution, fined $650,000 by state". WDVM. Retrieved 19 April 2021.
  20. ^ "BillerudKorsnäs to acquire Verso to ignite growth in North America". BillerudKorsnäs. 19 December 2021. Retrieved 20 December 2021.
  21. ^ "Paper company to pay nearly $250K for fish kill on Escanaba River". WOODTV.com. 2022-01-06. Retrieved 2022-01-06.
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