Graphic packaging advances CRB optimization strategy

Decommissioning of K3 CRB machine in Kalamazoo, Michigan

{reg}Graphic Packaging is taking further steps in its coated recycled paperboard (CRB) network optimization plan with the permanent decommissioning of its K3 CRB machine at its Kalamazoo, Michigan mill.

The K3 machine, the longest-running of the three CRB machines at the Kalamazoo mill, produced 125,000 tons of CRB annually before it officially ceased production in July.

Graphic Packaging, headquartered in Atlanta, has described this move as part of its CRB optimization strategy, initially announced in 2019 alongside a substantial investment in a new, state-of-the-art K2 CRB machine. The K2 machine, exceeding quality, cost improvement, and volume expectations ahead of schedule, has prompted the decision to decommission the older K3 machine.

With a reported annual CRB capacity of approximately 500,000 tons, the K2 machine was designed to become North America's largest and most cost-effective CRB producer.

Graphic Packaging's existing CRB network comprises mills in Kalamazoo, Middletown, Ohio, and East Angus, Quebec. The company previously announced plans to close its CRB mill in Tama, Iowa, with eventual closures of the Middletown and East Angus sites as it prepares to inaugurate a USD 1 billion CRB mill in Waco, Texas, in late 2025.

Once this streamlined mill system is fully operational, it will include the Kalamazoo and Waco sites, alongside its virgin paperboard mills in West Monroe, Louisiana; Queen City, Texas; Augusta, Georgia; and Macon, Georgia.

Graphic Packaging's current mill system produces approximately 4.2 million tons of paperboard annually, utilizing 1.4 million tons of recycled fiber last year among its CRB mills. With the completion of its optimization strategy, the company expects its total paperboard capacity to increase to 4.4 million tons per year.[/reg]