Chesapeake, G-P Finalize Graphic Packaging Joint Venture

Georgia-Pacific Corp. and Chesapeake Corp. Friday completed a previously announced agreement to combine Georgia-Pacific's litho-laminated graphic packaging business and Chesapeake's Color-Box litho-laminated graphic packaging business in a new joint venture.

The joint venture, officially known as Color-Box, LLC - A Georgia-Pacific and Chesapeake Joint Venture Company, will include Georgia-Pacific's graphics, corrugated and specialty packaging facilities at Dubuque and Monticello, Iowa, and Madera (Coralure), CA, and Chesapeake's Color-Box facilities at Richmond, IN; Visalia, CA; and Pelahatchie, MS. The new venture will be based at Atlanta, GA.

Chesapeake executive vice president - Merchandising & Specialty Packaging Octavio Orta said, "This joint venture is one of the steps we have taken to increase asset utilization for our graphic packaging business. Together, these combined entities will deliver a wider range of products and offer attractive additional options to customers."

"This joint venture helps Georgia-Pacific meet our strategic initiative to grow and enhance our graphics business," said Steve Macadam, senior vice president - containerboard and packaging for Georgia-Pacific. "This venture will be a major player in the litho-laminated packaging business, with a national capability."