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Headquarters Move Costs Verso $2 Million
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Dayton, Ohio, USA 26 March 2017 -- (From the Dayton Business Journal) -- A company moving its headquarters from Memphis to Dayton has put $2 million into consolidating its operations.

Verso Corp. said in a filing with the Securities and Exchange Commission it has spent that number to close down its Memphis office and offer severance and benefits to affected employees since it announced in November 2016 it would relocate its headquarters to the Dayton area. In all, about 42 of its top jobs have been relocating from that office to its larger Miami Township office.

Verso officials said earlier this year it plans to be finished by the end of the second quarter. The SEC filing came a few days after the company announced its year-end results for 2016, where it saw a 15 percent net sales decline -- from $3.12 billion in sales in 2015 to $2.64 billion in sales.

The company cited a "decrease in pricing due to the general softening of demand for coated papers," but said it maintained a position to be effective.

"With a refreshed capital structure, strong free cash flow and potential opportunities for value creation, Verso is well positioned to compete and win in the global marketplace," said CEO B. Christopher DiSantis in the earnings release.

Verso executed an agreement for a $500,000 economic development loan from JobsOhio last month -- essentially sealing the deal on its commitment to move to Dayton. JobsOhio information shows the company will make a comparatively modest $100,000 investment to upgrade the Miami Township building where it will have its headquarters in leased space.

The Ohio Tax Credit Authority voted in January on a six-year tax incentive worth $1.2 million for the company if it creates the jobs promised in the next three years. Verso will create $11.2 million in new payroll with 46 new full-time positions, and retain its existing 209 jobs and $18.5 million in payroll in the Dayton region.

Verso took over the local operations when it acquired Miamisburg-based NewPage in 2015. The company, which emerged from a bankruptcy last year, then announced in a November earnings call that it would make the move, prompted by a need to consolidate facilities and cut costs.



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