JAY, Maine (NEWS CENTER) — Verso Corporation has announced Wednesday it would be closing its No. 3 paper machine at its mill in Jay, leaving 120 people without jobs.

The shutdown of the machine will reduce its coated paper production capacity by 200,000 tons per year. The shutdown is expected to take place Aug. 1.

In a press release, a top Verso official made the following statement:

"Verso is leaving no stone unturned in our efforts to move the company toward sustained profitability, in a market where customer demand for our graphic paper products continues to decline," said Verso Chief Executive Officer B. Christopher DiSantis.

The company said employees affected by the shutdown would receive severance in accordance with Verso’s severance policy and Maine state law.