Verso to Reduce Graphic Paper Production by 100,000-110,000 Tons in Q2
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The graphic paper market is in structural decline and this development has even intensified since the beginning of the Covid-19 crisis. Verso Corporation has therefore decided to implement downtimes and curb production.
US paper manufacturer Verso Corporation announced during the presentation of its quarterly results that it intends to make 100,000-110,000 tons less graphic paper in the second quarter in order to balance supply and demand. Specialty paper, pulp and packaging paper production will reportedly not be affected.
Verso explains that while the Covid-19 pandemic had minimal impact on first quarter results, more damage can be expected in the second quarter. "It is difficult to forecast the continuing impact of Covid-19 on our business. When we apply industry forecast across Verso's book of business we could experience approximately a 40 percent decline in shipments in the second quarter of 2020 compared to the second quarter of 2019," the company said.
In the first quarter of 2020, Verso's deliveries were lower year-on-year by around 100,000 tons, standing at 500,000 tons. According to the company, however, this had only partly to do with the declines on the graphic paper markets. The closure of the Luke mill last year had contributed a big part to this drop as well, said Verso.
