Graphic Packaging to Idle PM at West Monroe Mill
June 20, 2008 - Graphic Packaging International said that it will temporarily shut down its No. 2 coated board machine at its West Monroe, Louisiana mill. The machine produces approximately 100,000 tons of coated unbleached kraft (CUK) annually, which is primarily used in the production of beverage cartons.
Marietta, Georgia-based Graphic Packaging said the decision to idle the machine is due to sharp cost increases for fiber, energy and chemicals.
"The recent run up in the price of crude oil has translated into higher costs for key mill production inputs like fiber, natural gas and petro-based chemicals," said David W. Scheible, president and CEO. "In response, we are undertaking various actions to offset those increases that include idling certain older, higher-cost assets.
"The decision to temporarily suspend production from machine number-two will help streamline our cost structure, while customer orders will continue to be fully met by using production from our other, lower-cost CUK machines," Scheible added.
Scheible also said that the company will implement price increases and renegotiate freight and delivery charges.
SOURCE: Graphic Packaging International, Inc.