Klabin to Invest R$1.7 Billion for New Recovery Boiler at Monte Alegre Paper Mill in Paraná, Brazil

The investment project involves the installation of a new recovery boiler at Klabin's paper mill in Telêmaco Borba, Paraná, Brazil.

June 8, 2024 - Klabin recently announced that its Board of Directors has approved an investment of R$1.7 billion for a modernization project at the company's Monte Alegre paper mill, located in Telêmaco Borba, Paraná, Brazil.

The project involves the installation of a new recovery boiler, which will bring environmental benefits and improve operational efficiency to the mill.

In a press release, Klabin explained, "The boiler is an essential piece of equipment in a pulp and paper plant, responsible for the recovery of chemicals used in wood cooking and for the production of steam from the processing of black liquor (fluid that removes components during the paper manufacturing process, such as lignin, extractives, and ashes). The modernization aims to ensure the operational continuity of the Monte Alegre Unit, with gains in sustainability, efficiency, and competitiveness for the plant."

Klabin noted that the total investment of R$1.7 billion, including around R$180 million in recoverable taxes, will be disbursed between 2024 and 2027. The funding will come from the company's cash, with no material impact on financial leverage and is included in the investment estimates disclosed by Klabin in December 2023.

The project is expected to generate up to 1,800 jobs at the peak of construction.

Startup of the new boiler is planned for the fourth quarter of 2026.

Klabin is on of Brazil's leading producers of pulp, papers and paperboard for packaging, industrial bags and corrugated board packaging.

SOURCE: Klabin