Graphic Packaging plans to close two U.S. folding carton plants

Graphic Packaging International, Inc., announced that itplans to close two manufacturing facilities and transition business to other U.S.operating locations. These closures are part of the Company's continued effortsto achieve synergies related to the March 2008 combination with AltivityPackaging, LLC ("Altivity").

Graphic Packaging's folding carton facilities in Fort Wayne, Indiana, and Santa Clara, California,are expected to discontinue production by mid-year 2010. The company's Santa Clara recycled paperboard mill and Orchard Park, California,facility will not be affected by the closures.

"As one of the world's largest packaging companies, wecontinue to push aggressively in 2009 to integrate assets from the 2008combination between Altivity Packaging and Graphic Packaging and streamlineoperations," said David W. Scheible, president and chief executive officerof Graphic Packaging International, Inc. "These key closures will completethe plant rationalization element of our integration efforts."

"We intend to continue to compete as the lowest costproducer in our markets. Our initiatives to integrate and optimize ourmanufacturing base ensure that our customers are reliably supported from asolid network of efficient, low-cost manufacturing facilities. As a result ofour focus on these goals, we are better positioned today to strengthen ourearnings performance and continue to reduce debt even under the currentchallenging operating environment," Scheible said.

SOURCE: Graphic Packaging International, Inc.