On Wednesday, Graphic Packaging Holding Company announced it will be moving forward on its plan to decommission its K3 coated recycling paperboard (CRB) machine in Kalamazoo, Michigan.
The machine is the company’s longest running machine and is one of three CRB machines at the Kalamazoo facility. K3 ceased operation on July 1 after the company decided to permanently shut down the 125,000-ton per annum machine.
Officials said decommissioning the machine removes higher cost, lower efficiency production capacity as part of its 2019 plan for CRB optimization. The machine will be replaced by a state-of-the-art CRB machine, the company said. With K2 reaching expected quality, cost improvement and volume commitments ahead of schedule, decommissioning K3 supports more efficient resource use and margin enhancement goals for the CRB network. The company said it will continue to service increased customer demand for high-quality coated recycled paperboard. The machine’s decommissioning is not expected to impact the company’s 2023 projected EBITDA of $1.9 million, the company said.
Atlanta-based Graphic Packaging Holding Company provides sustainable, fiber-based packaging solutions to food, beverage, foodservice, and other consumer products companies globally and is one of the largest producers of folding cartons and fiber-based foodservice packaging in the U.S. and Europe.