Another Aggressive Step toward Achieving $90 Million in Synergy Savings by 2010
MARIETTA, Ga., Oct. 1 /PRNewswire-FirstCall/ -- Graphic Packaging
International, Inc., a subsidiary of Graphic Packaging Holding Company (NYSE:
GPK), announced today that it plans to streamline its Label business in the
United States, and close the label manufacturing facility, located at 1501
Indiana Avenue in St. Charles, a suburb of Chicago, Illinois, early in 2009.
The St. Charles label facility provides 'cut and stack' paper labels to
the food and healthcare industries. Label production will continue through
year-end to fulfill customer orders and support the peak demand in the third
and fourth quarters. The Company plans to transition business from the St.
Charles site during the first quarter of 2009. The Company is providing
appropriate notification and assistance to the approximately 100 hourly and
salaried employees who will be affected by this closing.
'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 chief executive
officer of Graphic Packaging International, Inc. '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.'
Forward-looking Statements
Any statements of the Company's expectations in this press release
constitute 'forward-looking statements' as defined in the Private Securities
Litigation Reform Act of 1995. Such statements, which include statements
regarding facility closures, transition of business to other locations and our
ability to achieve $90 million of annualized synergies by 2010, are based on
currently available information and are subject to various risks and
uncertainties that could cause actual results to differ materially from the
Company's present expectations. These risks and uncertainties include, but are
not limited to, the Company's substantial amount of debt, inflation of and
volatility in raw material and energy costs, continuing pressure for lower
cost products, the Company's ability to implement its business strategies,
including productivity initiatives and cost reduction plans, currency
movements and other risks of conducting business internationally, and the
impact of regulatory and litigation matters. Undue reliance should not be
placed on such forward-looking statements, as such statements speak only as of
the date on which they are made and the Company undertakes no obligation to
update such statements. Additional information regarding these and other risks
is contained in the Company's periodic filings with the SEC.
About Graphic Packaging International, Inc.
Graphic Packaging International, Inc., a subsidiary of Graphic Packaging
Holding Company (NYSE: GPK), headquartered in Marietta, Georgia, is a leading
provider of paperboard packaging solutions for a wide variety of products to
food, beverage and other consumer products companies. The company is one of
the largest producers of folding cartons and holds a leading market position
in coated-recycled boxboard and specialty bag packaging. The company's
customers include some of the most widely recognized companies in the world.
Additional information about Graphic Packaging, its business and its products
is available on the company's web site at www.graphicpkg.com
SOURCE Graphic Packaging International, Inc.
