[MCRogers1974]

http://www.insideindianabusiness.com/newsitem.asp?ID=50215

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, Ind. 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 $6 million to $8 million in the fourth quarter of 2011 and the first quarter of 2012 with annual savings of $20 million to $25 million.

The company will transition business from the La Porte plant to a number of different existing operations in the U.S. 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 utilize 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.

[Southsider2k12]

Ugh. Terrible news in this economy.

[taxthedeer]

I worked there for a couple weeks Febuary of 2009. They paid pretty good money and had good benefits (BSBC) and 2 weeks paid vacation and $13.75/hr. after 90 days of employment. But the work and working conditions were not the greatest. They ran production 24/7 with two rotating 12 hour shifts, 6am - 6pm, 6pm-6am, 3 on 3 off 2 on 2 off with every other weekend mandatory. Lots of madatory overtime to cover all the vacation, sick leaves, absenteeism, FMLA's and call-offs. I chose not to stay because I forseen this exact thing happening. The work was really demanding. My best friend from high school both his wife and father-in-law for 20 years. He started there right out of high school when the opened in LaPorte in '89. They were in quite a bit of financial difficulty back then and seemed to have rebounded somewhat but I figure they were one of their underperforming facilities.

[MCRogers1974]

My sources tell me the problem was not labor costs but, rather, electricity costs. I guess the plant had electric bills of close to $1 million PER MONTH! They apparently used plenty of electricity and could not compete with the NIPSCO rates.

[Southsider2k12]

A million dollars worth of electricity? Wow.

[taxthedeer]

A million dollars worth of electricity? Wow.

They had massive printing presses, box floders, box gluers, packaging robotics, conveyors and lighting in house. It was a suprisingly big operation for grocey boxes. They were constantly looking to hire maintence personnel. Just didn't see much of a future for myself at that facility and didn't want to go through another layoff.

[eric.hanke]

They had massive printing presses, box floders, box gluers, packaging robotics, conveyors and lighting in house. It was a suprisingly big operation for grocey boxes. They were constantly looking to hire maintence personnel. Just didn't see much of a future for myself at that facility and didn't want to go through another layoff.

No way! One of my formet IT clients manufactures steel air tanks. They use resistance welders, and steel presses as part of the production process. Their electricity bill is not even 50k per month.

[taxthedeer]

No way! One of my formet IT clients manufactures steel air tanks. They use resistance welders, and steel presses as part of the production process. Their electricity bill is not even 50k per month.

All I know in the brief time I worked at that place the only thing I observed making any profits were the vending machines inside the break room.