Officials with Verso Paper Corp. say that 300 workers at the company's mill in Jay, Maine, will lose their jobs.
The company said Thursday that it's shutting down a pulp dryer and paper machine at the Androscoggin Mill in Jay. It will also indefinitely idle a mill in Kentucky.
Verso said declining demand for coated paper as well as Maine's high energy costs and local property taxes contributed to its decision to reduce production capacity.
Verso President and CEO David Paterson said that human resources officials will begin meeting with affected employees immediately.
Sens. Susan Collins and Angus King and Rep. Bruce Poliquin said in a statement that the announcement is a "devastating blow to the mill's hardworking employees and their families."