Verso Corporation to be acquired by a Swedish pulp and paper manufacturer
The Verso Corporation is set to be acquired by a Swedish pulp and paper manufacturer.
It’s buying Verso for 825 million dollars in cash.
The plan is to convert Verso’s largest facility, its Escanaba mill, into an integrated paperboard production site.
One machine is estimated to be converted by 2025, a second machine by 2029.
In addition to continued paper production in Escanaba during the conversion, BillerudKorsnäs plans to continue operating the Quinnesec mill, also in the Upper Peninsula.
The press release announcing the acquisition had no mention of Verso’s paper mill in Wisconsin Rapids.
That mill has been sitting idle for more than a year and a half now.
U.S. Congressman Tom Tiffany (R-Minocqua) and State Senator Mary Felzkowski (R-Tomahawk) praised the sale.
“Although I am concerned that BillerudKorsnäs’ merger statement failed to mention the Wisconsin Rapids mill, while going into detail on the investments they will make in Verso’s two Michigan mills in Escanaba and Quinnesec, I remain optimistic that this new ownership is a step in the right direction. I am sure we will find out more in the coming days,” said Felzkowski.
Tiffany said he looks forward to working with BillerudKorsnäs to make sure the new company fully reopens the Wisconsin Rapids mill. “Reopening the Wisconsin Rapids facility is a win-win proposition,” Tiffany said. “It will create and sustain good family-wage jobs at the mill, support indirect jobs in the trucking and logging sectors that feed the mill and promote better forest health and land management to boot.”
The deal is set to close in the second quarter of 2022.