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Folding Cartons: After recent acquisition, Graphic Packaging ready to close Contego UK plant

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Folding Cartons: After recent acquisition, Graphic Packaging ready to close Contego UK plant

June 14, 2013 - 12:23

SAN FRANCISCO, June 14, 2013 (PPI Pulp & Paper Week) -Graphic Packaging is planning to close the Gillingham, UK, food carton plant it acquired in December from Contego Packaging, according to local press reports.

The company started a 45-day consultation with union workers and said it would try to relocate some employees to other plants. The shut would impact 170 jobs.

Other company UK locations include Bristol and Leeds.

In a significant expansion of its European business, Graphic Packaging acquired Contego with four plants in the UK, Ireland, and Netherlands for $112.8 million from Platinum Equity. It also purchased two A&R Carton beer and beverage carton plants in the Netherlands and Germany for $25.6 million.

  • New York-basedClimax Packagingceased operations June 7 at its folding carton plant in St. Joseph, MO, according to local media reports. Climax acquired the 100-year-old former St. Joseph Packaging plant in 2009 and said it was not able to sell the operation, which was no longer profitable. More recently, the plant's products included gift boxes for national retailers such as Old Navy. The closing affects 54 workers. Climax will retain its 50,000 tons/yr uncoated recycled paperboard mill in Carthage, NY, and a carton plant in Lowville, NY. Climax, founded in 1902, was acquired by an investor group led by Rochester, NY-basedDelta Point Capitalin 2008.