Effective from 30 June 2020, the firm will close White Pigeon, Michigan CRB mill and PM1 containerboard machine in West Monroe, Louisiana
Graphic Packaging plans to close coated recycled board mill. (Credit: Juan Francia from Pixabay)
Consumer packaging company Graphic Packaging has announced plans to close coated recycled board (CRB) mill located in White Pigeon, Michigan as well as the PM1 containerboard machine in West Monroe, Louisiana in the US.
The move, which will be effective from 30 June 2020, is a part of the company’s strategic actions and was revealed in its first-quarter 2020 results.
The decision to close the 70,000 tonne CRB mill at White Pigeon comes due to the company’s overall CRB mill network’s operating strength and a new CRB supply agreement with Greif, an industrial packaging products and services provider.
Additionally, the closure of the 120,000tpa PM1 containerboard machine is based on the company’s confidence in its CUK global beverage packaging platform.
Maintenance outage deferred at Graphic Packaging’s West Monroe, Louisiana mill
Graphic Packaging said it has also deferred the planned maintenance outage at the West Monroe, Louisiana mill from the originally scheduled second quarter of 2020 to the third quarter.
The delay is due to the increase in near-term demand for CUK and contractor work-related as a result of the coronavirus outbreak.
Graphic packaging president and CEO Michael Doss said: “I am also pleased that our Board of Directors has reviewed and remains committed to the existing return of capital to stakeholders through dividends and distributions.
“Separately, we have decided to suspend our annual Adjusted EBITDA and cash flow guidance to allow time to assess potential shifts in consumer behaviour and spending patterns related to the Covid-19 crisis.
“Graphic Packaging, we are committed to continued leadership as we provide best-in-class quality and service to customers, a safe working environment for our employees, and long-term returns for stakeholders.”
Recently, Graphic Packaging has acquired Consumer Packaging Group (CPG) business from Greif, for around $85m.