MEMPHIS, Tenn., Nov. 14, 2016 /PRNewswire/ -- Verso
Corporation (NYSE: VRS) today announced three strategic initiatives
designed to drive increased efficiency in the allocation of its
resources, reduce the company's cost of doing business, and improve
Verso's operating and financial performance. As part of its
comprehensive strategy to position the company for success in a
challenging industry, Verso plans to organize its business into two
strategic business units – graphic paper and specialty paper;
consolidate its corporate offices in Memphis, Tennessee, and Miamisburg, Ohio, into a single headquarters
to be located in Miamisburg; and
improve the delivery of its support services with the objective of
reducing overhead expenses by at least 10 percent on an annual
basis. Planning for each of these initiatives is underway, with
implementation set to begin in January
2017.
"We expect that the strategic initiatives announced today will
enable Verso to be more agile in adapting to an evolving
marketplace, more responsive to our customers, more efficient and
cost-effective in our operations, and ultimately more financially
successful," said Robert M. Amen,
Verso's Chairman of the Board.
Strategic Business Unit Organization
The strategic organization of Verso's business into graphic
paper and specialty paper business units is intended to provide
greater focus, responsiveness and accountability. Each business
unit will develop and implement strategies for responding to the
specific market conditions and unique customer requirements of its
business segment. Each business unit will operate in a
semi‑autonomous manner and will be responsible for its own
revenues, costs and profitability. Both business units will receive
overall strategic direction from Verso's Board of Directors and
Chief Executive Officer and will be supported by a centralized
administrative staff.
Verso's graphic paper business unit will be led by Michael A. Weinhold, and its specialty paper
business unit will be led by Jason J. Handel. Both Weinhold
and Handel are seasoned executives at Verso with extensive
backgrounds and experience in the businesses they will oversee.
Currently, Weinhold serves as Senior Vice President of Sales,
Marketing and Product Development, while Handel serves as Group
Vice President of Technical Sales and Product Development. In the
new organization, Weinhold and Handel each will have the title of
President of the business unit that he leads and will report
directly to Verso's Chief Executive Officer.
"The strategic business unit organization will further
strengthen Verso's relationships with our graphic paper and
specialty paper customers by allowing us to focus more closely on
their distinctive business needs," said Weinhold. "Our ultimate
goal is to help our customers be more successful by meeting, and
exceeding, their expectations," Handel added. "If we can achieve
these results while consistently maximizing Verso's manufacturing
efficiency and cost‑effectiveness, we will make great strides
toward enhancing Verso's profitability and success for a long time
to come."
Corporate Office Consolidation
The planned consolidation of the Memphis and Miamisburg corporate offices reflects a
common-sense approach to organizing and locating Verso's support
functions. Verso has about 60 employees in Memphis and more than 200 employees in
Miamisburg, resulting in
considerable redundancy and inefficiency. Consolidating these
employees in a single location not only will reduce costs and
improve efficiency, but it also will strengthen the performance of
Verso's corporate staff by fostering increased familiarity, better
communication, closer camaraderie and other benefits that naturally
occur when people work together.
"We understand that the planned consolidation of Verso's
corporate offices will cause disruption in the lives of the
Memphis office employees who make
the move to Miamisburg and will
create additional challenges for those who do not," said
Kenneth D. Sawyer, Verso's Senior
Vice President of Human Resources and Communications. "Verso is
committed to treating all our Memphis office employees with fairness,
dignity and respect and to quickly communicating openly and
honestly with each person about how this decision will affect him
or her. Verso's departmental heads and Human Resources team will
begin meeting with our employees in the very near future."
Overhead Expense Reduction Project
Verso has established a goal to reduce its overhead expenses by
at least 10 percent compared to 2016. This objective is predicated
on the belief that there are ways to reduce the cost of delivering
the services that support Verso's business while preserving or even
improving the quality of such services. Verso intends to approach
the overhead expense reduction project openly, objectively and with
the singular, overarching goal of obtaining the best possible
results for the company as a whole.
Since Verso completed its reorganization in July, management has
been reviewing, benchmarking and analyzing the existing framework
for the delivery of support services and has begun identifying ways
that overhead expenses could be reduced. Verso will leverage both
internal and external resources to develop a comprehensive approach
to making its support services more efficient and cost-effective.
Verso expects to implement the changes necessary to achieve the
overhead expense savings in 2017 and to realize such savings over
the course of 2017 and 2018.
"Given the significant headwinds facing our industry, Verso
simply cannot afford to stand still when it comes to driving cost
out of our business," said Allen J.
Campbell, Verso's Senior Vice President and Chief Financial
Officer. "We must constantly renew our focus on and commitment to
efficiency and cost-effectiveness, whether at the mills, in the
field or at corporate. This overhead expense reduction project is
both a challenge and a necessity if we are to ensure Verso's
long-term profitability and viability."
About Verso
Verso Corporation is the turn-to company for those looking to
successfully navigate the complexities of paper sourcing and
performance. The leading North American producer of printing and
specialty papers and pulp, Verso provides insightful solutions that
help drive improved customer efficiency, productivity, brand
awareness and business results. Verso's long-standing reputation
for quality and reliability is directly tied to our vision to be a
company with passion that is respected and trusted by all. Verso's
passion is rooted in ethical business practices that demand safe
workplaces for our employees and sustainable wood sourcing for our
products. This passion, combined with our flexible manufacturing
capabilities and an unmatched commitment to product performance,
delivery and service, make Verso a preferred choice among
commercial printers, paper merchants and brokers, converters,
publishers and other end users. For more information, visit us
online at versoco.com.
Forward-Looking Statements
In this press release, all statements that are not purely
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements may be
identified by the words "believe," "expect," "anticipate,"
"project," "plan," "estimate," "intend" and other similar
expressions. Forward-looking statements are based on currently
available business, economic, financial and other information and
reflect management's current beliefs, expectations and views with
respect to future developments and their potential effects on
Verso. Actual results could vary materially depending on risks and
uncertainties that may affect Verso and its business. For a
discussion of such risks and uncertainties, please refer to Verso's
filings with the Securities and Exchange Commission. Verso assumes
no obligation to update any forward-looking statement made in this
press release to reflect subsequent events or circumstances or
actual outcomes.
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SOURCE Verso Corporation