Verso to reduce graphic paper production by 110,000 t in Q2

摘要

The graphic paper market is in structural decline and this development has even intensified since the beginning of the Covid-19 crisis. US-based Verso Corporation has therefore decided to implement downtimes and curb production. The company announced during the presentation of its quarterly results that it intends to make 100,000-110,000 t 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 per cent decline in shipments in the second quarter of 2020 compared to the second quarter of 2019," the company said. The aim is to not increase inventory levels.