Verso has announced strategic initiatives to reduce costs and improve its overall operating and financial performance.
The US-based printing paper and specialty paper producer has deviced three strategic initiatives, which also includes achieving increased efficiency in the allocation of its resources
Firstly, Verso said that it will split its business into two -the graphic paper and specialty paper units.
It will also bring its corporate office affairs in Memphis, Tennessee and Miamisburg, Ohio and merge them into a single headquarters which will come up in Miamisburg. The move is expected to result in cutting down costs besides improving efficiency.
Verso revealed that it will look to enhance the delivery of its support services to cut its overhead expenses by at least 10% on an annual basis.
While planning of the initiatives is still going on, the implementation has been slated to start in January 2017.
Verso board chairman Robert M. Amen said: “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.”
According to Verso, its graphic paper and specialty paper units will work in a semi-autonomous manner and will be responsible for their own revenues, expenses and profitability.
While the graphic paper business unit will be headed by Michael Weinhold, the specialty paper business unit will be headed by Jason Handel. The duo will become the presidents of their respective units and will report to Verso's CEO.
The company expects to implement the changes required to achieve the overhead expense savings in 2017 and to realize such savings over the course of 2017 and 2018.
