Klabin memory

The history of the Klabin Group began in 1889 when Maurício Freeman Klabin arrived in Brazil. An immigrant from Lithuania, the young entrepreneur left his family behind in his homeland and landed in Santos, São Paulo. He settled in the city of São Paulo, which was already emerging as an important commercial and financial center in the country. Maurício Klabin sold cigarettes to stores and inns, importing the paper and tobacco required to manufacture them. He got a job in a print shop that he later acquired: Empreza Graphica Klabin.

In 1890, Maurício F. Klabin founded his own company, M. F. Klabin e Irmão, which operated as a printing company and an importer of office supplies, in São Paulo. In 1889, together with his brothers Salomão and Hessel, and cousin Miguel Lafer, he founded Klabin Irmão e Cia – KIC.

The Getúlio Vargas government (1932-1945) was marked by an economic policy focused on promoting the development of heavy industry to meet market demand.

The paper and corrugated board sector led the generalized growth of the manufacturing industry. Problems caused by the difficulty in importing newsprint paper and paper pulp, among others, are mitigated by tax incentives for setting up paper mills.

During this period, Klabin Irmãos & Cia. – KIC experienced its first major development boom. The Group became one of the most important in the country, embarking on a process of rapid expansion and diversification of its activities.

The Plan of Targets of the Juscelino Kubitschek government (1955- 1960) focused on expanding the public sector, with the construction of highways, the Federal District in Brasília, among other priorities, and on continuing the establishment of heavy industries.

The urbanization process and the pace of population growth caused far-reaching changes in the consumer market. New products and evolving requirements affected diverse production sectors, stimulating the emergence of new activities. Klabin already stood out among the country’s leading business groups and launches new products in the market: corrugated board, synthetic fibers and advertising matches.

The paper sector predicted incentives for the construction of newsprint mills since it was detected in the early 1960s that the critical point facing the paper industry was the low production of newsprint paper, which supplied only a third of the domestic market.

In that political scenario marked by incentives, Klabin concentrated its investments on improving key production sectors by building new and modern mills, and centralizing its activities in the paper, corrugated board and ceramics industries.

The country started showing how the 1980s would be: high inflation, huge foreign debt, factors that combined with the global recession, provoked a sharp drop in market prices.

Klabin remained stable, thanks to a flexible sales policy that alternated between focusing on the foreign market and the domestic market. Always maintaining the quality of its production, it was able to export its products even with the global market in crisis and recession, indicating a high level of competitiveness.

Despite the difficulties, Klabin expands and diversifies its production in the pulp and paper industries, entering the multiwall sacks and dissolving pulp markets.

The start of the 1990s is characterized by an unstable, highly inflationary economy with high interest rates, forcing companies to adopt new measures to keep their sales stable, directing sales either to the export or domestic markets according to demand.

The Brazilian economy resumed growth in 1993, after 3 years of stagnation. Despite the recovery, which began in the last quarter of 1992 with the definition of presidential succession, the pulp and paper industry faced hurdles due to oversupply in the market, increasing competition among manufacturers and significantly affecting prices.

In 1994, the Real Plan comes into existence with the creation of a new currency. The goal to stabilize the domestic currency and end hyperinflation, increase the purchasing power and bring fresh prospects to diverse sectors of the economy.

The economy enters the new millennium with prosperity and financial stability. Major investments are once again directed to the public sector, especially to infrastructure.

In Brazil, following the global economic policy trends, the Growth Acceleration Program (PAC) is launched with investments targeted at the economic development of various sectors to stimulate GDP growth.

At the end of the 2000s, starting in 2010, the global economy is deeply shaken by the U.S. subprime mortgage crisis in 2007 and 2008.

In Brazil, starting from 2010, already suffering from the derivatives crisis, we also witness the scenario of political and economic instability, with unpopular fiscal austerity measures. Accusations of corruption in the government and industrial sectors drive the economy to stagnation, with large companies accused of fraudulent overpricing, creating cartels and paying bribes to politicians.