Graphic Packaging to Permanently Decommission K3 CRB Machine at Kalamazoo Mill

Removing higher-cost, less efficient production capacity is part of Graphic Packaging's coated recycled paperboard (CRB) optimization plan.

Oct. 4, 2023 - Graphic Packaging 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 year 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.

Graphic Packaging, headquartered in Atlanta, Georgia, is a leading provider of sustainable fiber-based packaging solutions for a wide variety of products 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 paper-based foodservice products in the United States and Europe, and holds leading market positions in coated recycled paperboard, coated unbleached kraft paperboard and solid bleached sulfate paperboard.

SOURCE: Graphic Packaging Holding Company