Marietta, Georgia, USA, 12 October 2011 -- /PRNewswire/ -- Graphic Packaging International, Inc. (GPI), a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), today announced plans to institute a reduction in force and close its La Porte, Indiana, carton facility.

"These very difficult decisions were studied significantly, but ultimately are necessary in light of the ongoing economic impacts being felt by our customers and consumers. These changes will help to ensure our continued success in the paperboard packaging space," said David Scheible, president and chief executive officer. "GPI continually evaluates all of our business operations and redeploys business to maximize the cost-effectiveness of our manufacturing footprint as a whole. This constant evaluation ensures we are serving our markets as efficiently as possible."

The overall reduction will affect approximately 200-220 employees. The company anticipates one-time costs of USD 6 million to USD 8 million in the fourth quarter of 2011 and the first quarter of 2012, with annual savings of USD 20 million to USD 25 million.

The company will transition business from the La Porte plant to a number of different existing operations in the United States. The La Porte carton plant will continue to operate and support customers while its business is transitioned to several other plants over the next few weeks. Customers have been notified of the operating change by the company and have been assured that the closure will have little to no impact on current or future orders.

In addition to closing the La Porte facility, the company is consolidating certain corporate and business unit functions to more efficiently use sales, product development, and administrative resources across all business groups.

The company will notify affected employees this week and will provide appropriate assistance to those affected.

Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), headquartered in Marietta, Georgia, is a leading provider of paperboard packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The company is one of the largest producers of folding cartons and holds a leading market position in coated-recycled boxboard and specialty bag packaging. The company's customers include some of the most widely recognized companies in the world. Additional information about Graphic Packaging, its business and its products is available on the company's Web site at www.graphicpkg.com.