Graphic Packaging Holding to receive private bonds to finance expansion plans

Graphic Packaging International LLC, a packaging firm based in Atlanta, is expected to receive up to $125 million in private bonds to finance the expansion of its paper mill in Kalamazoo, Michigan.

The Michigan Economic Development Corp.’s Strategic Fund Board approved a resolution this month that allows this financing move for the expansion.

According to a report from WOOD-TV, Grand Rapids, Michigan, Graphic Packaging plans to use the bond proceeds to help pay for construction and install a new coated recycled board machine as well as a storage warehouse. The expansion, which will cost $615 million overall, will help the company to increase its production of coated recycled board (CRB) by 60 percent to 800,000 tons per year.

Graphic Packaging announced the expansion of this mill in September 2019. The company had reported then that this will be designed to be the largest and lowest cost producer of CRB, or paperboard, in North America.

The Michigan Economic Development Corp. also expects the expansion project to be completed by the end of this year.

For a session on paper mill activities, attend the Paper and Plastics Recycling Conference in Chicago this fall.