Graphic Packaging to Invest in New CRB Machine at Kalamazoo Mill

SEATTLE (Scrap Monster):  Graphic Packaging Holding Company has chosen Kalamazoo, Michigan mill as the location for its new coated recycled board (CRB) machine investment. The new CRB machine will have an annual production capacity of approximately 500,000 tons.

The total investment is projected at $600 million. It will be funded from cash flow and existing credit facilities. The investment is termed as “capacity-neutral” in the sense that it will not boost the company’s total production, but will replace higher cost production at other mills.

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The new CRB machine to be installed at the Michigan facility is considered to be the largest and lowest cost CRB producing machine in the entire North American region. The machine will produce highest quality coated recycled board product with the lowest-caliper capabilities.

According to company press release, the full ramp up of the new CRB machine is expected in 2022, which in turn will add nearly $100 million in annualized EBITDA incrementally. By that time, it plans to close the Battle Creek mill. Approximately 160 employees at the Battle Creek mill have already been notified about the decision. The city is yet to be officially notified about the mill closure, sources said.

Also, Graphic Packaging intends to begin phasing out the Middletown, Ohio mill.