Graphic Packaging subsidiary to shut down machine because of higher raw material costs

Graphic Packaging International Inc., a subsidiary of packaging products maker Graphic Packaging Holding Co., said it will shut down one of its paper machines because of higher raw materials costs.

The company said it will temporarily shut down the number-two coated board machine at its West Monroe, La., mill. The machine produces about 100,000 tons annually of unbleached kraft, used to make beverage cartons.

Graphic Packaging said it had to shut down the machine because of sharp cost increases for crude oil, which has translated into higher costs for fiber, energy and chemicals.

The company said it will still be able to fill customers' orders by using its lower-cost machines.

The company added it will need to raise prices and renegotiate freight and delivery charges.