PAR: Androscoggin Mill Sold

Verso Announces Surprise Sale of Recently Upgraded Mill to Pixelle Specialty Paper Co. Becomes Part of Largest Specialty Conglomerate in the Country.

12 November, Jay ME Pixel Specialty Papers will purchase Verso’s Androscoggin (Jay ME) and , Stevens Point WI mills. The transaction is anticipated to close in the first quarter of 2020.

The Androscoggin mill is capable of producing approximately 425,000 tons of paper per year, and currently produces flexible packaging papers, release liner base, specialty labels, kraft papers and linerboard. In 2018, Verso restarted the Androscoggin No. 3 machine to produce new products, after idling the mill in 2017.

Verso implied as recently as August that Androscoggin would be one of the facilities to benefit from $210 million in investment. The mill employs approximately 500 workers {Lori Valigra, Bangor Daily News, 12.Nov.2019}.

The Stevens Point mill has the capacity to produce approximately 210,000 tons of paper per year and currently produces coated flexible packaging papers, release liner base, thermal papers, and other specialty labels.

Upon closing, Pixelle will be the largest specialty paper business in the U.S. in terms of annual production, with industry-leading positions in a broad range of products including high-speed inkjet, machine glazed (MG) & machine finished (MF) papers, release liner, thermal base paper, trade book paper, carbonless, greaseproof, and coated one side (C1S) specialties.

Following the sale, Pixelle will operate four mills (Androscoggin, ME; Chillicothe, OH; Spring Grove, PA; and Stevens Point, WI), three of which have on-site pulp mills, with a total of 12 paper machines and the capacity to produce more than one million tons of paper annually in aggregate. Additional operations will include a converting facility in Fremont, OH and wood fiber sourcing operations in strategic wood baskets in Maine.