Project to Expand Monte Alegre (MA1100)

Check below answers to the most frequently asked questions about Klabin’s expansion Project MA-1100. Click on the question to see the answer.

01. What is the project Klabin MA-1100?

It is the project to expand production capacity in the Monte Alegre Plant in Telemaco Borba (PR) from 700 thousand tons/year to 1.1 million tons/year with an investment of R$ 2.2 billion, which will put Klabin among the six leading manufacturers world wide of virgin-fiber boards.

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02. When was the project approved?

The Board of Directors of Klabin, a company controlled by Klabin Irmaos e Cia., approved the project on the 13th of January 2006.

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03. Does this work have any connection with the increase in Klabin’s production?

Yes, it is directly connected. When the project is concluded the company will be more competitive externally, by raising its total production capacity of packaging paper to 2 million tons per year

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04. Why did Klabin decide to expand this plant?

This project strengthens the company’s condition as market leader and reconfirms that it has met the targets that were fixed during restructuring in 2003, when it was announced that Klabin’s total production would grow from 1.6 million tons/year to 2 million tons/year.

This investment will place Klabin among the leading global manufacturers of cartonboard. The project will put the plant, currently the largest paper mill in Brazil, among the ten largest paper mills in the world. Klabin will be the sixth largest producer of virgin-fiber boards in the world.

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05. Will Klabin’s exports increase when the project is concluded?

With the conclusion of MA-1100, Klabin, which is Brazil’s largest paper exporter, shipping to more than 50 countries, intends to increase the share of exports in the company’s net revenues from 27% to 35%. Klabin products are well received in the USA and countries of Europe and Asia.

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06. Does the project have an environmental licence?

Yes, Klabin has environmental licences – both Preliminary (LP) and for Installation (LI), granted by the Instituto Ambiental do Parana (IAP).

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07. How much will Klabin invest in the expansion?

The company will invest approximately R$2.2 billion (including taxes).

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08. What safety policy has Klabin adopted during construction?

The company is using SSO, Klabin’s Program of Excellence in Work Safety and Health, which concentrates on eliminating deviations and consequently accidents, by making employees more aware. The program focuses mainly on changing employee habits with regard to safety, and therefore the company is striving to draw attention to the importance of using safety equipment (EPI’s) and adopting safe attitudes. Among the program’s premises is a strong emphasis on job planning, that is to say, prior analysis of risk prevention needed to carry out the task, for posterior follow up during execution.

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09. How long is construction expected to last?

The expansion project should last two years and is expected to terminate in January 2008.

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10. How many direct and indirect jobs will be created during construction?

The project provides for approximately one thousand direct jobs, 250 of which in mill operation and 750 in the forestry area. During implantation it is estimated that there will be as many as 4.5 thousand indirect jobs.

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11. How important is the Monte Alegre Plant to Klabin?

The Monte Alegre plant was Klabin’s first integrated paper mill and today is still the company’s main forest-industrial complex and the largest paper mill in Latin America.

The Monte Alegre farm’s first lands were acquired in 1934 and construction of the mill began in 1941. When Klabin settled in the region, the future town of Telemaco Borba was born.

Today the Monte Alegre Plant helps to supply other Klabin plants in Brazil and makes a strong contribution to the company’s export volume, by building a chain of production which reaches into more than 50 countries on all continents.

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12. Why increase investment in cartonboard?

The focus is on cartonboard because it is a higher value-added product, which raises the average price of the company’s product mix and meets a growing demand for Klabin products in this market segment (LPB, carrier boards and folding box board). Klabin’s investment in cartonboard points to a new direction in exports from the Brazilian sector, with modern, technologically advanced products. The quality of Klabin cartonboard, which is comparable to that of the best manufacturers in the world today, proves that Brazil can also be a great paper exporter.

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13. Who are the principal suppliers to the project and what are their responsibilities?

  • Metso Paper - wood yard, expansion of bleaching and fiber washing system and ink kitchen for board coating
  • Andritz - installation of eucalyptus fiber production line for the CTMP (Chemi-Thermo Mechanical Pulp) process
  • Voith Paper - will supply the new paper machine
  • CBC - will supply the new recovery boiler
  • Babcock Power Espanha - responsible for the new Power Boiler
  • Kvaerner - rebuild of the digestor, evaporation, causticizing and the new lime kiln
  • ABB - automation and distribution system for energy
  • Siemens/ CNEC - will supply the Turbo-generator
  • Centroprojekt - expansion of the Effluent Treatment Station
  • Enfil - water treatment for the new boilers
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14. Regarding machinery, what are the main acquisitions of this expansion?

A new state-of-the-art paper machine, 250 meters in length will be installed in the plant increasing total cartonboard production from 330 thousand tons/year to 680 thousand tons/year. The project also provides for the installation of a eucalyptus fiber production line for the CTMP process (Chemi-Thermo Mechanical Pulp), the largest in Brazil with a capacity of 140 thousand tons/year.

The new project also provides for installation in Monte Alegre of a new energy co-generation plant based on biofuel. A new biofuel boiler with the capacity of 250 tons of steam/hour will be the largest one in its category operating in Brazil and will make it possible to reduce heavy oil consumption by 20 thousand tons/year and so contribute to the reduction of greenhouse gases. It is also expected to reduce the levels of water consumption and of liquid and solid wastes.

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15. What are the environmental benefits of the project?

  • *Investment of about R$ 300 million in the environment
  • *Carbon Credits
  • *Reduction of 25% in specific loads of COD and BOD, discharged to the Tibagi River
  • *Total utilization of biofuel, reducing solid waste residues at Klabin and in the Telemaco Borba region
  • *Reduction in water consumption from 36 m3/ton to 30 m3/ton
  • *Reduction in fuel oil consumption by 20.000 tpy, with the installation of the new Biofuel Boiler
  • *Reduction by 15% of the volume of effluents per ton of production
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16. What are the social benefits os MA-1100?

  • *Creation of 250 direct jobs in mill operations
  • *Growth in the Forest Incentive and Leasing programs
  • *Injection of R$ 13 million per year in salaries in the Telemaco Borba region
  • *Creation of up to 4,500 jobs during implantation of the project
  • *Expenditure of R$ 356 million in taxes during implantation of the project
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