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Graphic Packaging Holding Company to Close Middletown, Ohio Paperboard Manufacturing Facility

1. GPK to close Middletown, Ohio paperboard facility by June 2025. 2. Closure impacts 130 employees and consolidates production in Michigan and Texas. 3. Move aims to enhance manufacturing efficiency and environmental footprint. 4. New facilities in Kalamazoo and Waco will boost production capabilities. 5. Company continues focus on sustainable packaging solutions and competitive advantages.

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FAQ

Why Bullish?

The consolidation appears to streamline operations and reduce costs, similar to past success stories like several consolidations in the packaging sector that led to improved margins. For instance, previous investments in new facilities have historically resulted in higher operational efficiency and profit margins for GPK.

How important is it?

The closure aligns with strategic goals that may enhance future profitability and operational efficiencies, making it significant for GPK's long-term strategy.

Why Long Term?

The benefits from enhanced efficiencies and reduced operational costs will take time to manifest, drawing parallels to past expansions which typically yield greater returns over a few years.

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PKGSONIP
, /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging", or "the Company"), a global leader in sustainable consumer packaging, today announced that it will permanently close its Middletown, Ohio, coated recycled paperboard manufacturing facility on or about June 1, 2025. The closure is part of a previously disclosed plan to consolidate recycled paperboard production into Kalamazoo, Michigan, and the new Waco, Texas, facility, which is expected to begin commercial production later this year. The Middletown closure will affect approximately 130 employees. "I want to thank the Middletown team which has played an important role in the growth and success of Graphic Packaging. We are working closely with affected employees to provide employment placement assistance and support," said Graphic Packaging President and CEO Michael Doss. The closure of Middletown advances the Company's strategy to build competitive advantage in paperboard manufacturing while driving environmental improvements including water and energy efficiency. "Graphic Packaging's investments in innovation and execution capabilities have made us the global leader in sustainable consumer packaging," Mr. Doss added. "Our investments in Kalamazoo and Waco are a critical part of the value we deliver to our customers, allowing us to produce the highest quality, most economically advantaged paperboard available in North America. With Waco moving quickly toward completion and transition inventory in place, this is the right time to further simplify our paperboard manufacturing footprint." Media: [email protected]Investors: [email protected]  Forward Looking Statements Any statements of the Company's expectations in this press release, including, but not limited to the timing of the closure of the Middletown, OH recycled paperboard manufacturing facility and the commencement of commercial production at the Waco, Texas paperboard manufacturing facility, and expected environmental improvements such as water and energy efficiency, product quality and economic advantage, constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and its present expectations. These risks and uncertainties include, but are not limited to, inflation of and volatility in raw material and energy costs, changes in consumer buying habits and product preferences, competition with other paperboard manufacturers and product substitution, the Company's ability to implement its business strategies, including strategic acquisitions, productivity initiatives, cost reduction plans and integration activities, as well as the Company's debt level, currency movements and other risks of conducting business internationally, the impact of regulatory and litigation matters, including the continued availability of the Company's U.S. federal income tax attributes to offset U.S. federal income taxes and the timing related to the Company's future U.S. federal income tax payments. 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, except as may be required by law. Additional information regarding these and other risks is contained in the Company's periodic filings with the Securities and Exchange Commission. About Graphic Packaging Holding Company Graphic Packaging Holding Company (NYSE: GPK), headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials. An industry leader in innovation, the Company is committed to reducing the environmental footprint of consumer packaging. Graphic Packaging operates a global network of design and manufacturing facilities serving the world's most widely recognized brands in food, beverage, foodservice, household, and other consumer products. Learn more at www.graphicpkg.com. SOURCE Graphic Packaging Holding Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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