São Paulo, May 5, 2021 –  Klabin, Brazil’s largest exporter and producer of paper for packaging solutions, approved, by decision of its Board of Directors, the scope of the second phase of the Puma II Project, with the installation of a paperboard machine. Klabin’s largest investment ever, the project is slated for startup in the second half of July, launching production of Eukaliner® on MP27. The second machine, MP28, which should startup in the second quarter of 2023, will serve primarily the paperboard market. Considering this definition and the impacts from variations in exchange rates and inflation, total investment in the project is estimated at R$12.9 billion.

“Over the last year, we have meticulously evaluated trends and market conditions to ultimately reach this decision. The packaging paper segment offers huge growth potential, and we see in paperboard and opportunity to create even more value for the Company, reinforcing our business model, which is integrated, diversified and flexible,” explained Klabin’s general director, Cristiano Teixeira.

Announced in 2019, the Puma II Project was planned in two phases. The first machine has annual production capacity of 450,000 tons of Eukaliner®, which is the world’s first kraftliner made 100% from eucalyptus fibers, making it an innovative product that already has been patented by the company. In addition to offering important sustainability attributes, Eukaliner® enables a reduction in grammage of over 10% while maintaining the same performance and final structure of packaging. Meanwhile, the paperboard machine defined for the project’s second phase has annual production capacity of 460,000 tons, which will consolidate Klabin’s position as a global producer of paperboard for liquid (milks and juices) and processed foods. “The paperboard market is expected to grow, driven primarily by the potential substitution of single-use plastics with more sustainable options,” said Teixeira.

Klabin’s Puma Unit, which already produces bleached pulp (hardwood, softwood and fluff pulp), with annual capacity of 1.6 million tons, will continue to supply both the domestic and export markets. Considering the operations of the Puma II Project, Klabin will reach annual installed production capacity of 4.7 million tons of pulp and packaging paper.