Graphic Packaging to Shut Some Folding Carton Plants
Aug. 12, 2008 - Graphic Packaging International today said that it plans to close several folding carton facilities and transition business to other U.S. operating locations as it continues to aggressively implement integration plans to achieve previously announced operating synergies.
The company's carton facilities in Greensboro, North Carolina and Richmond, Virginia, are expected to discontinue production around the end of 2008, and the folding carton plant in Smyrna, Tennessee, is expected to close during first quarter of 2009.
Graphic Packaging will also close its HandschyŽ ink and coatings sales office in Grand Rapids, Michigan, and its ink manufacturing operations in Indianapolis, Indiana, by the end of August. The Handschy business will be transitioned to other Handschy facilities.
"We are working very aggressively to integrate assets, streamline our operating footprint and achieve announced synergies of a minimum of $90 million, all of which will ultimately make us a more successful company, and better able to reduce debt and sustain our competitive market position," said David W. Scheible, president and chief executive officer of Graphic Packaging International, Inc.
"Our challenge, in what continues to be a difficult operating environment, remains to re-align and optimize our increased scope of operations and make our packaging business the lowest cost in the industry. I believe we are making significant and steady progress, and the impact will continue to strengthen our earnings position," Scheible said.
Additionally, Graphic Packaging has recently reorganized sales and operations in its specialty inks and coatings business to further drive completion of its integration goals by 2010. These changes also ensure that customers are reliably supported from a solid network of efficient, low-cost facilities.
SOURCE: Graphic Packaging International, Inc.