Marietta, Georgia, USA, 10 February 2009 -- /PRNewswire/ -- Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), today announced that it plans to close four manufacturing facilities and transition their business to other U.S. operating locations as it continues to aggressively complete integration plans to achieve the previously announced synergy savings of USD 90 million by 2010.
Graphic Packaging's folding carton facility in Tuscaloosa, Alabama, is expected to discontinue production by the end of the second quarter of 2009, and the folding carton plants in Morris, Illinois, and Muncie, Indiana, are expected to cease operations during third quarter of 2009.
The company also plans to close a multiwall bag packaging facility, located in Cantonment, Florida, by the end of the third quarter of 2009, and redeploy production to other company manufacturing sites in the United States to improve operating efficiencies in its specialty bag business and further strengthen synergy savings expected from the combination of Altivity Packaging, LLC, and Graphic Packaging Corporation, completed in the first quarter of 2008.
Additionally, Graphic Packaging announced a permanent layoff of approximately 60 employees today at its Elk Grove Village, Illinois, folding carton facility in a strategic move to streamline operations and help to ensure the company operates with the lowest cost structure in the industry.
"A year ago, in March 2008, we combined the operations of Graphic Packaging and Altivity Packaging to create one of the world's largest packaging companies. We are continuing to push aggressively in 2009 to integrate assets and streamline operations, as well as achieve a minimum of USD 90 million in synergy savings expected from our combination," said David W. Scheible, president and chief executive officer of Graphic Packaging International, Inc.
Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), headquartered in Marietta, Georgia, is a leading provider of paperboard packaging solutions for a wide variety of products to food, beverage, and other consumer products companies. The company is one of the largest producers of folding cartons and holds a leading market position in coated-recycled boxboard and specialty bag packaging. Additional information about Graphic Packaging, its business, and its products is available at www.graphicpkg.com.