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Management Side
Klabin Produces the First Pulp Bale

Sao Paulo, Brazil, South America 07 March 2016 -- Klabin, the largest paper producer and exporter in Brazil and the leading manufacturer of paper and board for packaging, corrugated board packaging and industrial sacks, announces the startup of its new pulp mill located in Ortigueira, Paraná. On last Friday, March 4, the company produced the first pulp bale at the Puma Unit, which already holds Chain of Custody certification from FSC® - Forest Stewardship Council® (FSC-C129105).

The new unit's construction was completed in 24 months and on budget.Total investment in the project was R$8.5 billion, which included all facilities, taxes and contractual corrections.

"Klabin once again demonstrates its capacity to transform dreams into reality by fulfilling the delivery of a construction project that represents the largest investment ever made in its 117-year history.The commissioning of the Puma Unit is an important milestone in our ten-year growth cycle, launched in 2011, that we have planned for the company," said Fabio Schvartsman, Klabin's general director.

"It was a huge challenge to transform into reality a project of such vast complexity.We executed construction efficiently, safely and agilely while simultaneously investing in training local workers, infrastructure projects and social actions that will contribute to the region's development," emphasized Francisco Razzolini, director of Industrial Projects and Technology.

The Puma Unit is expected to create 1,400 direct and indirect jobs, considering both the industrial and forestry operations.The unit will have the capacity to produce 1.5 million tons of pulp, with 1.1 million tons of bleached hardwood pulp (eucalyptus) and 400,000 tons of bleached softwood pulp (pine), a portion of which will be converted into fluff pulp, making it the world's only industrial unit designed to produce fluff pulp from the three fibers.More than 90% of the new mill's pulp production has already been sold.

Klabin's hardwood pulp is marketed under the brand LyptusCel, while its softwood pulp was christened PineCel.Called PineFluff, Klabin's fluff pulp will serve the domestic market, which today is an importer of this raw material, which is used to make diapers, sanitary pads and other products.

The new mill will also have two of the largest power generation turbines in the world ever manufactured for the pulp and paper industry.The unit will have generation capacity of 270MW, of which 150MW is surplus (sufficient to power a city with 500,000 people), which will make Klabin self-sufficient in power generation.The average supply distance between the forestry operation and the new mill is 72 kilometers, which will ensure the competitiveness and low-cost of wood transportation.

About Klabin

Klabin, Brazil's largest paper producer and exporter, is the leading manufacturer of paper and board for packaging, corrugated board packaging, industrial sacks 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 sacks).

Klabin's management is entirely oriented towards sustainable development, and pursues integrated and responsible growth that combines profitability, social development and a commitment to the environment.Klabin has been a component of 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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