Graphic Packaging International has unveiled plans to shut down its recycled paperboard mill in Santa Clara of California by end of this year.
The company took the decision based on the evaluation of the facility's manufacturing capabilities and associated costs in the context of the firm’s overall mill operating capability.
The closing of the facility is expected to affect around 120 employees.
Graphic Packaging Holding president and CEO Michael Doss said: "The closing of the Santa Clara facility was a difficult decision. We are working closely with the affected employees to provide support and assistance.
"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.”
Based in Atlanta of Georgia, Graphic Packaging Holding offers paper-based packaging solutions for the customers in the food, beverage and other consumer product companies.
The firm is one of the largest producers of folding cartons in the US, as well as holds significant portion of market share in coated unbleached kraft paperboard and coated-recycled paperboard.
In July, Graphic Packaging International acquired Carton Craft and its affiliate Lithocraft for an undisclosed sum.
Carton Craft is an independent converter engaged in the production of paperboard based air filter frames and folding cartons. The company operates two converting plants in New Albany, Indiana.