In response to sharp cost increases for fiber, energy and chemicals, Graphic Packaging Intl. plans to temporarily shut down its No. 2 coated-board machine at the West Monroe, LA, mill. That machine at produces approximately 100,000 tons of coated, unbleached kraft annually, which is primarily used in the production of beverage cartons.
“The recent run up in the price of crude oil has translated into higher costs for key mill production inputs like fiber, natural gas and petro-based chemicals," says David W. Scheible, president/CEO. “We’re undertaking various actions to offset those increases that include idling certain older, higher-cost assets.
“We have also determined it is necessary to implement price increases and renegotiate freight and delivery charges. These actions are necessary for us to remain competitive and to continue providing high-quality, innovative packaging to our customers, while also generating positive returns for our shareholders."