In a planned $27 million project, Graphic Packaging said it would increase folding carton plant output in Kalamazoo, MI, for multinational food, beverage, and other consumer product companies.
A company official said Graphic Packaging was "seriously" interested in the project after the Michigan Economic Growth Authority board approved a $2.69 million 12-year employment tax credit, and the city of Kalamazoo provided Graphic Packaging $1.5 million in real and personal property tax abatements over 12 years.
The official said the company still must complete planning efforts. The expansion project, if done, "generally would take longer than one year to complete, from ground breaking to commissioning," the official said.
"Planning discussions with the city of Kalamazoo and local management are in progress to commence construction on a fast track schedule to avoid delays related to seasonal conditions," Graphic Packaging said in its release. The project would add 160 jobs at the carton plant in North Kalamazoo that is next to the company's two-machine coated recycled board (CRB) mill.
The mill is the largest producer of CRB in North America and the company said in late March that its total cash cost for a delivered ton was nearly half the industry average - the lowest among CRB makers. The mill produced 392,000 tons last year, with 88% or 345,000 tons consumed at Graphic carton plants.
Graphic Packaging is a major CRB producer for cereal boxes, and three cereal companies (General Mills, Kellogg and Kraft Foods) run cereal facilities within 300-350 miles of Kalamazoo, according to a Graphic Packaging report at the Credit Suisse conference. A total of 12 cereal plants from General Mills (five), Kellogg (four), Kraft Foods (two) and Quaker Oats (one), are within 750 miles of Kalamazoo.
2008 Paperloop, Inc. Provided by ProQuest LLC. All Rights Reserved.
Copyright 2008 Pulp & Paper
Comments