Social Projects March 19, 2014

Klabin unveils Cornerstone and presents Project of the New Mill in Ortigueira

Present at the event were the Governor of the State, Beto Richa, local authorities and company executives and board members

Klabin held a ceremony on this Wednesday afternoon the 19th to unveil the Cornerstone of the company’s new pulp mill, the Puma Project. The mill, forecast for inauguration in 2016, will receive investments of R$ 5.8 billion, excluding forestry assets, improvements to infrastructure and taxes.

The event, held on the project worksite, assembled 600 guests, including mayors and authorities from 12 municipalities and the Governor of the State of Parana, Beto Richa who stressed the importance of the investment for the region. “This enterprise of Klabin is a milestone for the new Parana. It is the biggest private investment in the history of our State, which came into being through good dialogue between the company and the state government”, he pointed out. “Besides its economic importance, the differential of this new mill is its support for the development of an important region of Parana. 12 towns will be getting direct positive impacts, with generation of taxes and job opportunities.”

For Fabio Schvartsman, the CEO of Klabin, “this is the beginning of a new growth cycle for the company, which will double its volume of production in three years. This mill is being built to be one of the most productive in the world.” The executive also drew attention to the historical importance of the new mill. “Klabin has 115 years of history and 80 years in Parana and still has a lot of energy to take on a project of this size.”

During the ceremony, Pedro Piva, a member of Klabin’s Board of Administration, received the Title of Honorary Citizen of Telêmaco Borba. The tribute was given by the Municipal Council and made reference to the company’s history in the Town. “The first generation of the Klabin family founded the company, the second generation built Monte Alegre and the third generation is building the Puma Project.”

In her speech, the mayoress Lourdes Banach, said that Ortigueira is privileged to receive an enterprise of this size which marks the beginning of a new era. “The population is anxiously waiting and prepared for this new moment” she stated.

Development Opportunity
With the new mill, infrastructure works will be carried out and there will be an increase of economic and social opportunities, income generation, professional training and a boost to tax collection, contributing to regional development.

Sharing of ICMS
An agreement signed between the State Government, Klabin and municipalities of the region decided that the ICMS tax arising from the new mill’s operations should be split between the twelve municipalities.
Ortigueira will get 50% of this tax and the other 50% will be shared between Cândido de Abreu, Congonhinhas, Curiúva, Imbaú, Reserva, Rio Branco do Ivaí, São Jerônimo da Serra, Sapopema, Telêmaco Borba, Tibagi and Ventania. This division will be based on criteria such as the population and the social development rate of each municipality.

Job Creation
Around 85% of the workers currently employed (earth-moving stage) in the Puma Project come from municipalities in the neighborhood of the enterprise.

At the peak of construction, it is estimated that 8.5 thousand people will be working on the site. When it is running, the new plant will have 1.4 thousand job positions between mill and forest.

In order to offer the region’s residents more opportunities, Klabin has backed training and qualification through free courses, offered in partnership with the Secretary of Labor and Pronatec (National Program of Access to Technical Training and Employment).
Since April 2013, over 400 students from Imbaú, Ortigueira and Telêmaco Borba graduated in various areas. Fresh classes should be opened throughout this year.

Improvements to regional Infrastructure
In May 2013, a protocol of intent was signed between the Government of the State of Parana and Klabin for investments in regional public infrastructure. Among the forecast works are construction of a branch rail line; transmission lines and about 100 kilometers of roadworks, such as paving the roads of Campina and Minuano; improvements to the Strategic Highway and construction of a new road on the right bank of the Tibagi River.

Energy Efficiency
The mill in Ortigueira will be self-sufficient in generating electrical power, with production of 270MW of energy. Of this total, it is expected that 120MW will be used for its own consumption by Klabin and the surplus 150MW – enough energy to supply a city of half a million inhabitants, like Londrina (PR) – will be made available to the Brazilian grid system. Consequently, all the energy produced by Klabin will be clean, coming from renewable sources and without burning fossil fuels.

Of the total of forests planted with pine and eucalyptus, 107 mil hectares will be to assure wood supply for the new mill. The average radius between forests and the plant is 72km, which guarantees competitiveness and low transport cost for the wood. Part of the production will be shipped by rail to the port of Paranagua.

About Klabin

Klabin, Brazil’s biggest paper manufacturer and exporter, produces packaging paper and board, corrugated boxes, industrial sacks and timber in logs. Founded in 1899, today it has 15 industrial plants in Brazil and one in Argentina. It is organized in three business units: Forestry, Paper (cartonboard and kraft paper) and Converting (corrugated board and industrial sacks).

Sustainable Development guides the management of the company, in the pursuit of integrated, responsible growth which combines profitability, social development and environmental commitment. In 2014, for the first timeKlabin will be part of BM&F Bovespa’s Corporate Sustainability Index (ISE). Consequently, it is a signatory to the UN Global Compact and looks for suppliers and business partners who adhere to the same ethical values, transparency and respect for the principles of sustainability.

Information for the press:

Maquina PR Group
Carlos Moura | (11) 3147-7453
Tatiana Souza | (11) 3147-7921
Fernanda Doniani | (11) 3147-7448

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