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Klabin Announces General Shutdown at Otacílio Costa Unit

Otacílio Costa, Santa Catarina, Brazil 24 May 2016 -- Klabin, Brazil's largest paper producer and exporter and the leading manufacturer of paper and board for packaging, corrugated board packaging and industrial bags, announces the Annual Maintenance Shutdown of the Otacílio Costa Unit in Santa Catarina, from June 6 to 16. The shutdown involves interrupting paper production to perform the maintenance required to ensure the equipment's proper functioning and safety as well as the quality of the production process.

During the period, 55 third-party service providers and around 1,500 outsourced workers will be involved in the maintenance work. Among the main activities to be conducted are inspections of boilers, digesters, power generation and distribution systems and production process control systems. The number of temporary workers requires additional logistics and infrastructure, such as transportation, accommodation, meals and other items that drive demand and the local economy of Otacílio Costa and the surrounding region. Other benefits generated by the maintenance work include generation of taxes for the city and increased business at hotels, bars, restaurants and stores, as well as support services for accommodating workers in the city.

During the operation, new odors and noises coming from the plant, especially on the 6th and 7th, which mark the start of maintenance activities, and on the 15th and 16th, when operations are resumed, can be perceived by the community. However, it is important to emphasize that these changes do not pose any threat to public health or the environment.

In case of doubts, the community may contact Klabin at the 24-hour toll-free number 0800 721 0228.

About Klabin

Klabin is Brazil's largest paper producer and exporter and the leading manufacturer of paper and board for packaging, corrugated board packaging, industrial bags and timber in logs. Founded in 1899, it has 15 industrial units in Brazil and one in Argentina. Klabin is organized into four business units: Forestry, Pulp, Paper (paperboard, kraft paper and recycled) and Packaging (corrugated board and industrial bags). Management of the company is entirely oriented towards sustainable development, in the pursuit of integrated and responsible growth that combines profitability, social development and a commitment to the environment. Klabin has been included in the Corporate Sustainability Index (ISE) of the São Paulo Stock Exchange (BM&FBovespa) since 2014. It is also a signatory to the United Nations Global Compact and the Brazilian Pact to Eradicate Slave Labor, and seeks suppliers and business partners that adopt the same values of ethics, transparency and respect for the principles of sustainability.

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