SAO PAULO, Nov 4, 2014 (RISI) - Brazil's largest packaging paper producer Klabin confirmed that its new 1.1 million tonnes/yr bleached eucalyptus kraft (BEK) and 400,000 tonnes/yr fluff pulp mill hit 25.5% of completion at the end of October. The Puma project, as it was named to celebrate a local cougar, is under construction in Ortigueira city, Paraná state, southern Brazil, and marks the company's greatest turnaround in its business strategy, which before focused only on the sale of packaging papers and corrugated boxes.
"We will move from a 1.8 million tonnes/yr conversion, paper and boxboard company to a 3.5 million tonnes/yr company which also produces fiber and exports energy by 2016," Klabin's CEO, Fabio Schvartsman, stated.
At the new Ortigueira site, 98% of earthworks have been completed and 93% of the equipment has been purchased, so the construction of the two pulp lines can move on. "As we began works one year ago, the strong rains we faced in the region didn't affect the project's schedule and budget. Only 14% of the machinery is imported and 80% of the workers are from the Paraná state," Klabin's project and technology director, Francisco Razzolini, commented.
The executive pointed out that Puma will produce energy not only for the pulp mill's production processes, but also for trade - 150MW will be sold to the country's market grid, adding revenue to Klabin.