BUCKSPORT - Verso Paper Corp. announced Wednesday that it would close its Bucksport mill at the end of the year, laying off more than 500 workers.

Verso Chief Executive Officer Dave Patterson said the Bucksport mill had not been profitable for a number of years, “in spite of our employees’ dedicated efforts to make it so.”

A company assessment indicated it would be “impossible for the mill to achieve profitability in today’s marketplace,” he said. Patterson’s remarks were included in a statement released on Wednesday.

The Bucksport mill is one of two mills in Maine operated by the Memphis, Tenn.-based company. Verso has a third mill in Quinnesec, MI. The Bucksport closure would leave 400 union workers and more than 100 salaried employees out of work. The company indicated would work closely with union officials and salaried employees concerning severance benefits and other assistance, and with local and state officials to assist displaced workers.  

The closure of the Bucksport mill would result in pre-tax cash severance and other shutdown charges of roughly $35-45 million, including roughly $30-35 million in severance and $5-10 million in other shutdown costs, according to Verso. The company did not release figures for its non-cash assets, including the mill itself and equipment, citing depreciation and insufficient information. 

The power plant will stay open, according to a statement from the Maine Department of Labor. The agency said Wednesday that its Rapid Response team will meet with union and company officials as soon as possible to make a plan that would include “filing for trade assistance and working with all partners in that area.”

A regional transition team already exists due to other recent mill layoffs in the region, according to the department. 

Gov. Paul LePage, on Wednesday, called the closure “a true loss for the region,” and said the state will be putting “all of our available resources into assisting these workers, this industry and this region.”

LePage added that the state would help in the search for a buyer for the mill operation.

Senate Republican Leader Michael Thibodeau of Winterport called the announcement “devastating” but “not inconsistent with the steady decline of Maine’s paper industry that we have been witnessing now for decades.” 

Thibodeau said the first priority should be be finding short term services for employees.

“At the same time, the State of Maine, Verso, and all other parties involved need to act quickly to see what, if anything, can be done to save these jobs in Bucksport. I will do everything in my power to help achieve that goal,” he said.

The Department of Labor is directing workers to The Bangor Career Center, 45 Oak Street, Suite 3, Bangor. Hours are 8 a.m. to 5 p.m., Monday through Friday. More information is available on the Career Center website.

Ethan Andrews can be reached at news@penbaypilot.com