Graphic Packaging Obtained State Nod for Financing of Paper Mill Expansion

SEATTLE (Scrap Monster): Graphic Packaging International LLC announced that its plan to partially finance expansion at its Kalmazoo-area paper mill through up to $125 million in private bonds has received approval by the Michigan Economic Development Corporation (MEDC). The Corporation’s Strategic Fund Board passed a resolution Wednesday approving the company’s plans.

The proceeds from the bond will finance the construction and setting up of a new coated recycled board (CRB) machine at the mill as well as the new expanded storage warehouse facility. The expansion is expected to generate around 100 jobs, out of which nearly 70 have already been created. The expansion project is scheduled for late-2021 completion, said the MEDC authorities.

Graphic Packaging had announced investment of $615 million in new CRB machine at Kalamazoo, Michigan mill, touting it as the largest and lowest cost CRB producing machine in the entire North American region. The new machine is expected to have an annual production capacity of around 500,000 tons. Upon full ramp up of the new machine, the company plans to close the Battle Creek mill.

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