BUCKSPORT, Maine (AP) — Verso Paper Corp. says 125 jobs will be cut when it permanently shuts down a paper machine at its mill in eastern Maine.

Verso announced Tuesday it’s shutting down its No. 2 coated groundwood paper machine in Bucksport on Oct. 23. The mill currently runs four paper machines and has more than 700 employees.

The Memphis-based company is shutting down two other paper machines at its mill in Sartell, Minn., resulting in 175 job cuts.

Verso also employs about 900 workers at its mill in Jay, Maine. While now lay offs were announced Jay’s Town Manger Ruth Cushman said the news out of Bucksport was concerning enough.

“Even though there is no impact on the Jay mill, we cannot help feel the pain that Bucksport feels,” Cushman said. “We lost a mill not too long ago, ourselves, and we know the impact it can have on the whole community. I guess there is nothing else to say. I do feel bad for them.”

Wausau Paper mill that straddled the Jay and Livermore Falls line permanently shut down in June 2009. More than 200 people lost there jobs over several months in two phases.

Verso officials say demand for coated groundwood papers — used in products such as magazines and catalogs — has been falling. President and CEO Mike Jackson said shutting down the machine in Bucksport will match supply with demand.

Verso’s other Maine mill, in Jay, is not affected by Tuesday’s announcement.