Graphic Packaging to close Battle Creek mill by August 2022
Graphic Packaging plans to close its longtime downtown Battle Creek mill, which could send about 200 jobs out of the city when it shuts its doors sometime before August 2022.
After informing its Battle Creek employees, Atlanta-based Graphic Packaging International notified the city on Feb. 17 of its intentions to shutter the 350,000-square-foot recycled paperboard mill by the end of the summer.
"We did not make this decision lightly," the company said in a statement. "We recognize plant closures are very difficult for all involved, and we are committed to assisting our affected employees over the coming months."
In 2019, the company announced the development of a $600-million paper machine at its Kalamazoo plant, dubbed "K2." The four-story machine is now producing paperboard and, once fully operational, will produce 1,400 tons per day.
Graphic Packaging said the investment in Kalamazoo added 140 new workers to that location, with 650 currently employed by the company in Kalamazoo. The state-of-the-art K2 project was designed as "capacity neutral," with production consolidated from its other mills, including Battle Creek.
Graphic Packaging said it is providing "outplacement services" for its Battle Creek employees and will host job fairs for other positions with the company.
"There's a concern any time we lose some of our employment base," said Battle Creek Mayor Mark Behnke, who also cited the 2018 closure of the nearby TreeHouse Foods plant. "Within two blocks, we've lost close to 300 employees in the last three years, and those are good-paying jobs."
Behnke said the loss of Graphic Packaging leaves "a huge void" as city leaders continue to look at developing more employment opportunities. He also noted a silver lining with the closure of the mill, which has long frustrated motorists on Capital Avenue Southwest, where semitrucks at its loading docks block four lanes of traffic up to 30 times per day.
"At least the traffic bottleneck will no longer be there," he said.
The paper mill, located on the banks of the Kalamazoo River at 79 E. Fountain St., has deep roots in Battle Creek as part of the city's cereal boom. The site was originally home to Michigan Carton Company, founded in 1907 with W.K. Kellogg as its first president.
The current warehouse dates to 1923. Michigan Carton Co. was acquired by St. Regis Paper Co. in 1974. That company was purchased by Field Container in 1984, which set up subsidiaries Michigan Carton Corp. and Michigan Paperboard (later Altivity) before merging with Graphic Packaging in 2008.
Graphic Packaging said the Battle Creek property likely will be sold for future commercial use.
The site will be added to a growing list of available or soon-to-be available properties located in the commercial district along the "cement river," formerly the Bottoms neighborhood.
Since 2018, the area has seen the closure TreeHouse Foods and the Pancake House, the closure and demolition of Kmart, and fires and demolitions at Village Inn Apartments and Econo Lodge.
Horrocks Farm Market intends to relocate to the former JCPenney Co. site at Lakeview Square Mall. Battle Creek Unlimited now owns the former Kmart site, while New Mill Capital purchased and gutted the former TreeHouse Foods plant for future redevelopment.
MORE: Shuttered Battle Creek cereal plant to get new life, could be used for housing
What happened to Battle Creek's Econo Lodge?
Demolition begins at former Battle Creek Kmart site
The city of Battle Creek is currently exploring plans for naturalizing the concrete channel of the river, which was designed by the Army Corps of Engineers in 1961 as a flood control measure.
Contact reporter Nick Buckley at nbuckley@battlecreekenquirer.com or 269-966-0652. Follow him on Twitter:@NickJBuckley
This article originally appeared on Battle Creek Enquirer: Graphic Packaging to close Battle Creek mill by end of summer
