Verso Paper mill’s valuation could sink by $220M
The valuation of the Verso Paper mill in Jay could drop by more than $220 million, based on the most recent estimate by town officials as they raised property taxes by 12.5%.
The Bangor Daily News reported that the town of Jay is expected to complete a new appraisal for the paper mill at Verso’s request. But with next year’s municipal budget complete, the current projection is that the mill’s value will drop from $815.4 million to $592 million.
Jay Town Manager Shiloh LaFreniere told the newspaper that the mill’s most recent valuation is based on the “best information” available.
Verso, which also runs a mill in Bucksport, recently posted a $43 million loss in an earnings report for this year’s second quarter, though company officials remain optimistic about its $1.4 billion acquisition of competitor NewPage, which would make it the state’s largest single papermaking company. The merger could help cut annual costs by about $175 million.
Earlier this month, the value of the Madison Paper Industries mill in Madison was set to decrease by nearly $150 million as a result of the declining domestic paper market.
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