News

Graphic Packaging is to close four US plants by the first quarter of 2009 as part of its policy of streamlining the business to "strengthen its earnings position".

Folding carton facilities in Greensboro, North Carolina and Richmond, Virginia, will discontinue production before the end of 2008 and another plant in Smyrna, Tennessee, at the beginning of next year.

Graphic Packaging will also close its ink manufacturing operations in Indianapolis by the end of this month.

David W Scheible, president and chief executive, said the restructuring would generate $90m (£48m) to help "reduce debt and sustain our market position".

"Our challenge, in what continues to be a difficult operating market, remains to align and optimise our increased scope of operations and make our packaging business the lowest cost in the industry," he added.