Consumer packaging company Graphic Packaging has revealed plans to close White Pigeon, Michigan coated recycled board (CRB) mill and PM1 containerboard machine in West Monroe, Louisiana.

The decision was revealed as part of the company’s strategic actions and announcements in its first-quarter 2020 results.

The closure of 70,000 tonne CRB mill at White Pigeon is due to the company’s overall CRB mill network’s operating strength and a new CRB supply agreement with Greif.

Earlier this month, Graphic Packaging Holding Company (GPHC) acquired industrial packaging solutions provider Greif for $85m.

The closure of the 120,000tpa PM1 containerboard machine is based on the company’s confidence in its CUK global beverage packaging platform.

Closure of these two facilities will be effective from 30 June 2020.

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Additionally, the company has deferred the planned maintenance outage at the West Monroe, Louisiana mill. It was originally scheduled to take place in the second quarter and has now been delayed to the third quarter.

This is because of the rise in near-term demand for CUK and contractor work-related following the Covid-19 pandemic.

The company has also suspended annual adjusted EBITDA and cash flow guidance.

Graphic packaging president and CEO Michael Doss said: “I am also pleased that our Board of Directors has reviewed and remains committed to the existing return of capital to stakeholders through dividends and distributions. Separately, we have decided to suspend our annual Adjusted EBITDA and cash flow guidance to allow time to assess potential shifts in consumer behaviour and spending patterns related to the Covid-19 crisis.

“Graphic Packaging, we are committed to continued leadership as we provide best-in-class quality and service to customers, a safe working environment for our employees, and long-term returns for stakeholders.”