KALAMAZOO, Mich. (News release) -- Graphic Packaging Holding Company announced that its Kalamazoo, Michigan mill will be the location for the new coated recycled board (CRB) machine. The Company will invest $600 million in the project, and the machine is expected to have an annual capacity of approximately 500,000 tons.

The CRB machine is designed to be the largest and lowest cost producer of CRB in North America. Upon completion of the project, the Company believes the CRB machine will produce the highest quality coated recycled board product in North America with the lowest-caliper capabilities in the industry.

The Company expects the investment will be capacity neutral by eliminating higher cost production at other facilities and will deliver an incremental $100 million in annualized EBITDA upon full ramp up in 2022. The investment will be funded from cash flow and existing credit facilities with most of the spending occurring in 2020 and 2021.