Klabin’s expansion project in the Monte Alegre Plant (PR), called Project MA-1100, is a landmark in the company’s cycle of new investments.

The main target of the expansion project is to double the coated board production capacity of 350,000 tons per year, raising installed capacity of coated boards from 330,000 tons to 680,000 tons per year. The board machine will come on stream in the fourth quarter of 2007. Consequently, Klabin’s total production capacity will be increased from 1.6 million tons to 2 million tons per year.

Besides new machinery and the implantation of new areas, Klabin Project MA-1100 also includes technological modernization in various parts of the Parana Plant, involving a high degree of complexity because of the new layout and new internal logistics, which envisage plant optimization as a whole and guarantee its safe and continuous operation.

The Monte Alegre Plant (PR) was chosen as the site for this expansion because it has mastered coated board production technology, utilizing a mix of long and short fibers (pine and eucalyptus), and it has an adequate technical and logistical structure.

Strategic motivation for Klabin Project MA-1100:

An opportunity for Klabin’s sustained growth in the virgin-fiber coated board market, with higher profitability and stable pricing;

The global market for this grade of board is 14 million tons a year and is growing at an annual rate of 2.5%, equivalent to one new world-class machine per year;

To take advantage of experience gained in the liquid packaging board market, and grow in the carrier board and folding boxboard markets;

To place Klabin sixth among the world’s top virgin-fiber coated board manufacturers, with the start-up of the new machine, and thus consolidate it as a global player;

*For more information on Klabin Project MA-1100, go to the area of Klabin Investor Relations.