Graphic Packaging is driving forward the optimisation of its production network, which includes examining the potential closure of its British packaging plant in Winsford. As part of these measures, the US packaging group has also completed the sale of its site in Croatia and announced the closure of a plant in Lebanon, Tennessee.
In its latest investor update for the second quarter of 2026, Graphic Packaging lists the optimisation of production, site structure and portfolio as one of its short-term strategic priorities. The company explicitly refers to the completed sale of the Croatian site and further proposed plant closures. The plant in Winsford is not explicitly named in the presentation itself. However, according to additional information provided by the company, employees there have been informed that Graphic Packaging is considering a possible closure of the site.
Closure in Winsford is being considered
Winsford is located in Cheshire, southwest of Manchester, and is part of Graphic Packaging's UK manufacturing network. As recently as its 2025 annual report, the group listed Winsford as one of its international packaging sites. The factory there is leased.
Unlike the plant in Lebanon, the closure of Winsford has not yet been decided. Graphic Packaging explicitly speaks of the intention to evaluate a potential closure. This means the site is still in an assessment phase. The present investor presentation contains no details on how many employees would be affected by a potential closure or when a decision might be made.
The review is connected to the further streamlining of the production network. According to its own statements, Graphic Packaging wants to concentrate its activities on core competencies and locations with the highest return prospects. The sale of the Croatian plant was completed in the second quarter. For Lebanon in Tennessee, the company has announced a closure in order to concentrate production volumes on fewer locations.
Cost reductions are intended to improve earnings
Behind the measures is also pressure on profitability. Graphic Packaging achieved sales of 2.188 billion US dollars in the second quarter of 2026, compared to 2.204 billion dollars in the same quarter of the previous year. Adjusted EBITDA fell from 336 to 247 million dollars. The adjusted EBITDA margin consequently dropped from 15.3 to 11.3 per cent. The company points, among other things, to price trends and inflation of around 60 million dollars in the quarter, particularly in logistics, resins, labour costs, chemicals and secondary fibres.
Graphic Packaging has therefore raised its savings target for 2026. Instead of the previously planned 60 million dollars, structural measures are now expected to generate savings of around 85 million dollars in the current year. According to the company, ten million dollars of this was accounted for in the first quarter and 25 million dollars in the second quarter. A further approximately 50 million dollars is expected for the second half of the year.
At the same time, the group has withdrawn parts of its outlook for 2026. For adjusted EBITDA, Graphic Packaging now expects a result at the lower end of the previous range of 1.05 to 1.25 billion dollars. The forecast for adjusted earnings per share was cut from 0.75 to 1.15 dollars down to 0.65 to 0.90 dollars. For adjusted cash flow, the company now expects 600 to 700 million dollars instead of 700 to 800 million dollars.
Source: Graphic Packaging
