Graphic Packaging Holding announced that its wholly owned subsidiary, Graphic Packaging International, Inc., will close its coated recycled paperboard mill in Santa Clara, California, by year end. This decision was made as a result of a thorough assessment of the facility’s manufacturing capabilities and associated costs in the context of the company’s overall mill operating capability. The closure will affect approximately 120 employees.
“The closing of the Santa Clara facility was a difficult decision. We are working closely with the affected employees to provide support and assistance,” said President and CEO Michael Doss. “Following the closure, we expect to meet our external and internal paperboard commitments previously serviced by our Santa Clara mill by redistributing production across our lower cost Midwest coated recycled mills, as well as our West Monroe, Louisiana, and Macon, Georgia, coated unbleached kraft paper mills. Our ability to redistribute our production underscores the flexibility that we have across our mill system that has been greatly enhanced over the last several years through targeted and strategic capital investments.”
According to industry analysts, Graphic Packaging is the largest producer of coated recycled board, accounting for 6% of industry production. The move is viewed as positive, tightening the supply and balance demand of CRB.
