Klabin to invest 220M reais in new 80,000 tonnes/year PM for sack kraft production for its Correia Pinto unit in Brazil; operations expected to begin in Q4 2013

SAO PAULO , May 30, 2012 (press release) – A Klabin S.A. (“Company”, BM&FBovespa: KLBN4) announces to the market that it has reached an agreement to purchase a new paper machine for sack kraft production. With a capacity of 80 thousand tonnes/year, the equipment will be installed in the Correia Pinto Unit. The new capacity is intended to supply the growth of the industrial bags market and it is scheduled to start its operations in the fourth quarter of 2013.

The new machine, which is manufactured in Brazil, will consume the surplus of the pulp production of the unit, as well as paper trims generated by the units in Santa Catarina state (Lages, Itajaí, Correia Pinto and Otacílio Costa).

The capital expenditure is approximately R$ 220 million, which will be disbursed over the years 2012 and 2013. The production capacity of extensible sack kraft of the Company will reach 213 thousand tonnes in 2014.

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