Graphic Packaging to Cut Some Jobs, Close La Porte Carton Plant

Oct. 12, 2011 - Graphic Packaging International, Inc. (GPI) today announced plans to institute a reduction in force and close its La Porte, Indiana (USA) carton facility.

"These very difficult decisions were studied significantly, but ultimately are necessary in light of the ongoing economic impacts being felt by our customers and consumers. These changes will help to ensure our continued success in the paperboard packaging space," said David Scheible, president and chief executive officer.

"GPI continually evaluates all of our business operations and redeploys business to maximize the cost-effectiveness of our manufacturing footprint as a whole. This constant evaluation ensures we are serving our markets as efficiently as possible."

The overall reduction will affect approximately 200-220 employees.

GPI anticipates one-time costs of $6 million to $8 million in the fourth quarter of 2011 and the first quarter of 2012 with annual savings of $20 million to $25 million.

The company said that it will transition business from the La Porte plant to a number of different existing operations in the U.S.

According to GPI, the La Porte carton plant will continue to operate and support customers while its business is transitioned to several other plants over the next few weeks. Customers have been notified of the operating change and have been assured that the closure will have little to no impact on current or future orders.

In addition to closing the La Porte facility, GPI is consolidating certain corporate and business unit functions to more efficiently utilize sales, product development and administrative resources across all business groups. GPI said it will notify affected employees this week and will provide appropriate assistance to those affected.

SOURCE: Graphic Packaging International, Inc.