Graphic Packaging Corp. plans to close its Bow, N.H., and Clinton, Miss., folding carton plants and cut 400 jobs by the end of fourth quarter 2005.
The closures are part of the Marietta-based paperboard packing company's (NYSE: GPK) manufacturing rationalization initiatives.
Graphic Packaging also will expand three existing sites, including Ft. Smith, Ark., Mitchell, S.D., and Lumberton, N.C. Production and equipment from the Bow and Clinton facilities will be redistributed primarily to the three expanding folding carton plants. Operating cost savings could be as much as $15 million annually.
"While deciding to close a plant is never easy, a thorough review of strategic alternatives available to the company made it apparent that these plant closings, coupled with the expansion of three existing folding carton plants, better positions GPC to achieve cost-containment and operating efficiency goals," said Stephen Humphrey, Graphic Packaging president and CEO. "By redistributing production and equipment, we will strengthen our geographic proximity to GPC customers and mills, allowing us to provide better customer service as well as leverage technology across all GPC businesses in a more cost-effective manner."
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