![]() Combined, they produce 1.2 million tons of paper annually. Graphic Packaging operates a similar plant in Texarkana, Texas. The 300-acre Augusta plant is known in the industry as a solid bleached sulfate mill. The plant is Richmond County's third-largest taxpayer. The project is not expected to create additional jobs at the plant, which would make the company eligible for state job-tax credits of up to $4,000 for each new position created. "To have this news now is just outstanding."Īside from the $350 million bond issue – which enables the company to obtain low-cost financing – the project was incentivized through state investment-tax credits, which can offset up to 50 percent of the company's Georgia corporate income tax liability. "When the plant was purchased, people were not sure what the long-term disposition would be," Davis said. 1 after purchasing a 79.5 percent stake in International Paper's North American consumer packaging business.Īugusta Mayor Hardie Davis said the investment "sends a tremendous message" about the quality of the area's workforce and business climate. "Investing this much money in Augusta makes (the plant) vital for many years to come," he said. More important, he said, is the plant's long-term viability. Wray said the deal accounts for two-thirds of the $550 million invested in Augusta during the year. "It is certainly in the top 10," she said. Kelley said the project's size makes it one of the largest corporate investments in Georgia in 2018. Augusta EDA President Cal Wray and Adela Kelley, the Georgia Department of Economic Development's senior project manager, served as Graphic Packaging's primary local points of contact. "They could have put this investment anywhere in the world and deciding that Augusta, Georgia, is the location for this new investment is telling of the vitality and strength of our community," Ingram said.ĭiscussions with the company began in May through a third-party site-selection consultant. The Fortune 500 company is financing the project through industrial revenue bonds approved earlier this month through the Augusta Economic Development Authority.Īuthority Chairman Henry Ingram said it is "wonderful to see a company decide to reinvest in our community." The investment includes enhancements to existing machinery, installation of a new recovery boiler and improvements to the wood yard. "We want to improve the product and the convertibility, or performance, of the product for our existing customers but also position ourselves to win new customers," said Scott Grimes, a Graphic Packaging senior vice president who oversees the company's Augusta and Macon plants. Graphic Packaging officials said during an exclusive interview with The Augusta Chronicle that the six-year, multi-phase modernization will improve the quality of the bleached paperboard the mill manufactures for various food-service and consumer-product companies. ![]() The capital infusion into the south Augusta plant will extend the life of the 60-year-old facility and enable it to maintain its 750-employee workforce. ![]() on Thursday said it is investing $350 million in the Augusta paper mill it acquired earlier this year from International Paper. ![]() One of Augusta's oldest and largest manufacturers is getting more than a quarter-billion dollars in upgrades.Ītlanta-based Graphic Packaging Holding Co. The companies’ integration is also expected to result in $40m total synergies over the 36 months following the deal’s completion.Editor's note: Adela Kelley's last name was misspelled in previous versions of this story. The transaction is estimated to add $1.1bn in annual sales for Graphic Packaging and $160m in annual adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA). Graphic Packaging provides sustainable fibre-based packaging solutions for various sectors, including the food, beverage and foodservice industries.Įarlier this month, the company agreed to buy European fibre-based packaging producer AR Packaging in a deal worth almost $1.45bn in cash. “We have unique flexibility to quickly meet changing demand patterns for sustainable packaging solutions and deliver value for all stakeholders.”ĭoss said that the partnership had been mutually beneficial and provided returns for both companies. “Through the combination with International Paper’s consumer packaging business, along with our other organic and inorganic growth initiatives, we have built scale across all three paperboard substrates.
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