ATLANTA, Oct. 4, 2023
/PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK),
a leading consumer packaging company, announced today it will
permanently decommission the K3 coated recycled paperboard
(CRB) machine in Kalamazoo,
Michigan. The K3 machine is one of three CRB machines at the
Kalamazoo facility and is the
company's longest-running machine. K3 ceased operation on July
1 and today's announcement reflects the decision to
permanently shut down the 125,000-tons per annum machine.
Removing higher-cost, less efficient production capacity is part
of Graphic Packaging's CRB optimization plan first announced
in 2019 alongside the transformational investment in a new,
state-of-the-art K2 CRB machine. Permanently decommissioning the
older machine is the company's next step of network optimization.
With K2 reaching expected quality, cost improvement and volume
commitments ahead of schedule, the permanent decommissioning of K3
supports more efficient resource use and margin enhancement goals
for the CRB network, while continuing to service increased customer
demand for high quality coated recycled paperboard.
The machine decommission is not expected to have any impact on
the company's 2023 projected Adjusted EBITDA of $1.9 billion, the midpoint of the previously
provided guidance range.
About Graphic Packaging Holding Company
Graphic Packaging Holding Company (NYSE: GPK), headquartered in
Atlanta, Georgia, is committed to
providing consumer packaging that makes a world of difference. The
Company is a leading provider of sustainable, fiber-based packaging
solutions to food, beverage, foodservice, and other consumer
products companies. The Company operates on a global basis, is one
of the largest producers of folding cartons and fiber-based
foodservice packaging in the United
States and Europe and holds
leading market positions in coated recycled paperboard (CRB),
coated unbleached kraft paperboard (CUK) and solid bleached sulfate
paperboard (SBS). The Company's customers include many of the
world's most widely recognized companies and brands. Additional
information about Graphic Packaging, its business and its products
is available on the Company's website
at www.graphicpkg.com.
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SOURCE Graphic Packaging Holding Company