Business Units, Institutional July 13, 2021

Klabin invests R$342 million in special and expansion projects

The projects will expand the production capacity and offering of special packaging solutions, a segment that has been delivering strong growth over recent months

São Paulo, July 13, 2021 – Klabin, Brazil’s largest producer and exporter of paper for packaging and paper packaging, will invest R$342 million in special and expansion projects in 2021 and 2022. The packaging segment will receive the bulk of the investment (R$251 million), which will be used to expand the company’s capacity to convert paper into packaging as well as its offering of cutting-edge technology for top-quality printing. The new equipment will start operations in mid-2022.

The investments will expand by 50,000 tons Klabin’s packaging production capacity, considering corrugated board boxes and bags. According to data from the Brazilian Paper Packaging Association (Empapel), the industry is expected to deliver growth in 2021 of up to 8.8% on the prior year.

“We are optimistic for the long term on the paper packaging market, which should outpace GDP growth. Industry sales have been strong, led by record growth in the food segment, and should even accelerate driven by recent trends, such as e-commerce and the growing calls for more sustainable packaging, such as those made from paper. The investments reinforce Klabin’s commitment to create value for its clients, ensure quality service and support their growth,” said Douglas Dalmasi, Packaging Director at Klabin.

The investments include the acquisition of new printers, including one digital printer, and the installation of new converter machines at units in the states of Pernambuco, Bahia, Minas Gerais, São Paulo and Santa Catarina. The imported equipment, which are the first of its kind in Brazil, feature high-definition printing capable of delivering state-of-the-art solutions that meet the specific needs of growing segments, such as produce, cosmetics, e-commerce, beverages, food, appliances and electronics, which demand sophisticated printing.

“The customer journey has been gaining prominence and packaging is a key part of that experience. High-quality printing, both internally and externally, is an advantage we already have and for which we have taken yet another step with this new equipment to ensure we always can offer the best and latest solutions to our clients,” said Dalmasi.

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