Verso Corporation announced its paper mill in Luke, Maryland will permanently close, impacting the employment of about 675 people.
The closure is expected by June 30, the company said Tuesday.
The company said reasons for closing the mill are that there is a decline in customer demand but rising costs, as well as infrastructure challenges associated with recent environmental regulation changes.
“The continuing decline in demand for the grades of paper manufactured there left us no choice but to close this facility that has struggled with profitability for a number of years,” said Verso Interim Chief Executive Officer Leslie T. Lederer. “The company explored the possibility of producing alternate grades of paper products but the conclusion remained the same – we could not achieve profitability at the mill in today’s market environment.”
The company said employees were notified that their last day of employment with Verso is expected to be June 30, and eligible employees will receive a severance package.