Graphic Packaging Intl. to close three carton plants

-- Converting Magazine, 8/18/2008

Graphic Packaging Intl. will close several folding-carton facilities and transition business to other US operating locations as it implements integration plans following the Altivity Packaging merger. Additionally, GPI has reorganized sales and operations in its specialty inks and coatings business to further complete the integration by 2010.

The converter’s carton facilities in Greensboro, NC, and Richmond, VA, are expected to discontinue production around the end of 2008, and the folding-carton plant in Smyrna, TN, is expected to close during first quarter of 2009. GPI will also close its Handschy® ink and coatings sales office in Grand Rapids, MI, and its ink manufacturing operations in Indianapolis, by the end of August.

“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," says David W. Scheible, GPI president/CEO. “Our challenge, in what continues to be a difficult operating environment, remains to realign and optimize our increased scope of operations and make our packaging business the lowest cost in the industry.”