Graphic Packaging International, a leading provider of packaging solutions to food, beverage and consumer product companies, announced closure of its coated recycled paperboard mill in Santa Clara, California by the end of 2017.
According to the announcement, the decision was made as a result of a thorough assessment of the facility’s manufacturing capabilities and associated costs in the context of the company’s overall mill operating capability.
Michael Doss, Graphic Packaging International’s President and CEO, commented:
“The closing of the Santa Clara facility was a difficult decision. We are working closely with the affected employees to provide support and assistance. Following the closure, we expect to meet our external and internal paperboard commitments previously serviced by our Santa Clara mill by redistributing production across our lower cost Midwest coated recycled mills, as well as our West Monroe, Louisiana, and Macon, Georgia coated unbleached kraft paper mills. Our ability to redistribute our production underscores the flexibility that we have across our mill system that has been greatly enhanced over the last several years through targeted and strategic capital investments.”
The closure will affect approximately 120 employees.
In 2Q2017 the company increased Adjusted EBITDA margin to 15.6%.
Earlier Graphic Packaging agreed to acquire assets of Carton Craft and Lithocraft in the US.
The company is one of the world’s leading printed carton suppliers, producing packaging product for both the food and beverage sectors. It is one of the largest manufacturers of folding cartons, unbleached paperboard, coated recycled board, microwave packaging and machinery.