Kalamazoo mill will be the location for the new coated recycled board machine that has an annual capacity of around 500,000 tonnes


Image: Graphic Packaging will install new coated recycled board machine at Kalamazoo mill. Photo: courtesy of Graphic Packaging International, LLC.

US-based packaging solutions provider Graphic Packaging has selected its Kalamazoo mill in Michigan as the location for the new coated recycled board (CRB) machine.

In August this year, the company approved a $600m (£481m) investment in a new CRB machine in the Midwest, which is planned to be installed at one of its facilities in Ohio or Michigan.

The new coated recycled board machine will be installed at Kalamazoo mill in Michigan

The new machine, which will have an annual capacity of around 500,000 tonnes, is touted to be the largest and lowest cost producer of CRB in North America.

On completion of the project, the CRB machine is believed to produce the highest quality coated recycled board product in North America with the lowest-calliper capabilities in the industry.

The investment is expected to support Graphic Packaging’s commitment to sustainable packaging.

Graphic Packaging said that it expects the investment will be capacity neutral by eliminating higher-cost production at other facilities and will deliver an incremental $100m (£80.2m) in annualised EBITDA upon full ramp-up in 2022.

The company plans to fund the investment from cash flow and existing credit facilities with most of the spending occurring between 2020 and 2021.

In July this year, Graphic Packaging agreed to acquire Artistic Carton Company, a US-based producer of folding cartons and coated recycled paperboard, for an undisclosed sum.

Under the deal, Graphic Packaging subsidiary will acquire all the assets of Artistic Carton, including one coated recycled paperboard (CRB) mill and two converting facilities.

Based in Atlanta of Georgia, Graphic Packaging provides paper-based packaging solutions for the customers in the food, beverage, foodservice and other consumer products companies.

The company holds a significant market position in coated recycled paperboard, coated unbleached kraft paperboard and solid bleached sulfate paperboard. It is also a major producer of folding cartons and paper-based foodservice products in the US.