Klabin's new containerboard factory, Projeto Figueira, will soon receive two recycled PMs, adding combined production capacity of 450,000 tons/year; factory--set to start up in Q2 2024--will also receive two corrugators with capacity of 100,000 tons/year

December 12, 2023 (press release) –

08/12/2023

Expected to come into operation in the second quarter of 2024, KLABIN's new cardboard box factory, Projeto Figueira, should soon receive two recycled paper machines, according to Cristiano Teixeira, the company's general director.

Adding a production capacity of 450 thousand tons per year – combined –, the machines reach the size of the MP 27, which is installed in Ortigueira (PR), to produce kraftliner paper from virgin fiber. While the paper and cellulose market reaches around 400 million tons annually globally, the box paper segment is expected to reach 180 million of this total.

The new factory in Piracicaba (SP) will also receive two corrugators, with a net capacity addition of 100 thousand tons per year.

According to Teixeira, currently, around 70% of MP 27's production is directed towards converting KLABIN cardboard boxes. “It is a machine that, at least in the next 20 years, will be the [world] cash cost champion, which also brings cost reduction to the converter,” said the executive.

Given the lower prices of kraftliner on the international market – due to excess supply –, the company started to use its production in an integrated manner in its own packaging, replacing recycled paper. In this context, KLABIN would have closed around 200 thousand tons of recycling capacity per year.

“Ultimately, depending on market conditions and maintaining market share, KLABIN can convert 100% of the paper produced into boxes, which have had a stable price in dollars for six years. This is operational hedging”, commented the general director, highlighting that the dynamics contribute to ensuring capital gains on invested capital.

Considering the conversion business, the company increased its market share from 18% to 22% in 2023, mainly due to the acquisition of International Paper (IP) packaging assets in Brazil. “This speaks directly to price stability,” said Teixeira.

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