Klabin Directors Approve Plans for 1.5 Million tpy Pulp Mill in Brazil

The new pulp mill will have an annual capacity to produce 1.1 million tonnes of hardwood pulp and 400,000 tonnes of softwood pulp.

June 13, 2013 - São Paulo-based paper producer Klabin S.A. on June 11 announced that its Board of Directors approved the Executive Officers' proposal for the construction of a new pulp mill in the city of Ortigueira, in the State of Paraná, Brazil, with the capacity to produce 1.5 million tonnes of pulp per year — 1.1 million tonnes of hardwood pulp and 400,000 tonnes of softwood pulp (“Project Puma”).

In a written statement, Klabin said, “The Company believes that the Project Puma differs from other ongoing pulp projects due to the flexibility of producing two types of fiber in the same plant and for enabling the supply of the Brazilian market of fluff pulp, which is currently imported.

“Additionally, it will be possible to obtain a lower cost in the production of the two fibers, as well as to benefit from excellent inbound and outbound logistics and to produce 144MW of surplus energy,” Klabin said.

Klabin currently owns 107,000 hectares of planted forest with pine and eucalyptus, which would be the source of raw material for the new pulp mill.

“The average distance between the forests and the plant is 74km,” Klabin noted, “ensuring competitiveness and low cost of the wood transportation.”

Klabin expects to begin the project in the first quarter of 2016

“[Project Puma] represents an important step for Klabin, in light of the significant increase of its production capacity, which will not only supply the markets of pulp, but will also enable future expansions in packaging paper machines, as well as provide operational gains and positive impacts in its financial results,” the company said.

SOURCE: Klabin S.A.