Graphic Packaging Holding Co.’s Graphic Packaging International Inc. unit said Thursday it will streamline its U.S. label business, shuttering a label manufacturing facility near Chicago in early 2009.

The St. Charles, Ill., label facility makes "cut and stack" paper labels for the food and health-care industries. Marietta, Ga.-based Graphic Packaging (NYSE: GPK) said label production will go forward through 2008 to fulfill customer orders and support the peak demand in the third and fourth quarters.

"This is another strong step under our integration plan to optimize our manufacturing footprint and achieve the announced operating synergies of $90 million by 2010," said David W. Scheible, president and CEO Graphic Packaging, in a news release. "We believe this decision strengthens our ability to support growing regional markets from our most efficiently run label facilities, and will continue our aggressive earnings improvement in spite of the challenging operating environment."

In September, Graphic Packaging sold two coated-recycled board mills to PaperWorks Industries Inc. In August, it reported plans to close several folding carton facilities.