We took an important step towards growth in 2019, as set forth in Klabin 2030 Strategic Roadmap with the approval of the Puma II Project, which will expand production capacity by 920,000 tons of packaging paper per year.
Approved in April 2019 and with a gross investment estimated at BRL 9.1 billion – the largest in our history – the Puma II Project comprises the construction of two packaging paper machines, with integrated pulp production, which will be installed in the same location as the Puma Unit (pulp mill opened in 2016).
State-of-the-art technology at Puma II with an environmental benefit: a wood gasification system, unprecedented in Brazil, will enable the operation of the lime kiln with 100% renewable fuel.
In 2019, also in line with the packaging expansion plan of Klabin’s Strategic Roadmapwe purchased an industrial plant in the state of Ceará, providing for the implementation of the Horizonte Unit, intended for the production of corrugated board packaging to meet the demands of the growing fruit market in the country’s Northeast region. Located 35 km from Fortaleza and 90 km from the Pecém port, the plant, which started operating in January 2020, receives recycled paper from the Goiana Unit, in Pernambuco, and virgin fiber from Klabin’s units in the states of Paraná and Santa Catarina.
Both the new capabilities and the expansion of our geographic footprint, added to investments in innovation, R&D and the constant search for sustainable solutions, open several new paths for growth at the present time and in coming years.
square meters of total area and more than
BRL 100 million,
BRL 48 million
was initially invested.
Expected generation of
direct and indirect jobs; 10% already generated at operation startup.
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The foundation for our business expansion involves over 258,000 hectares of planted pine and eucalyptus forests, which provide access to high-quality raw material. The high productivity of our forests represents a major competitive advantage: we are world leaders in the production of pulp per planted hectare (see chart).
Our forestry operations have been evolving to address the higher production volumes of pulp, paper and packaging resulting from capacity increases. To meet the need for additional wood, we deployed a strategy, which is being implemented as planned, for the acquisition of standing forests and new areas for planting, in addition to encouraging the production of forests by independent and developed producers. Efforts are also directed towards ensuring the gold standard of our forestry operations.
In 2019, we worked on strengthening forestry processes and methods, mainly to improve cost control and supply security.
The issuance of (green bonds) also demonstrates our commitment to sustainable growth, as the funds from these bonds are invested in projects aligning environmental priorities with efforts to reduce the impacts of our activities.
Examples include mosaic forest management, biodiversity conservation and clean energy production initiatives, as well as those on adequate waste disposal. Since 2017, the three issuances of such category of securities have amounted to USD 1.2 billion in securities issued and raised.
A report on the allocation of resources is annually published, which presents the investments made, the respective positive environmental impacts generated and the third-party verification opinion for the monitoring of the process. Reports are available in the Investor Relations website.
Most robust logistics structure
GRI 103-1, 103-2, 103-3
In 2019, an important progress of the logistics structure took place, which will support Klabin’s new production capacities. The Company won a public bid to operate a warehouse at the port of Paranaguá, in an area of over 27,000 m2 for a period of 25 years, subject to a 45-year extension. Investments of approximately BRL 145 million are estimated and the start of operations is scheduled for 2022.
Another 2019 highlight was the approval of the project to duplicate our railway operations in Paraná, which includes the purchase of new rail assets for container transportation (model not yet used by Klabin), the construction of a container depot, attached to the Puma Unit, with rail access and the purchase of modern equipment for movement within the yard, 100% electric and propelled by energy self-generated by the plant.
This mode of transportation , also brings important environmental benefits to Klabin, such as the reduction in the emission of Greenhouse Gases (GHG), one of the items featured in Klabin’s Sustainability Policy. Currently, each railway composition transporting pulp from the Puma Unit to the port of Paranaguá replaces about 200 trucks and with the new container modality will replace over 90 trucks.
The terminal concession at the port of Paranaguá and investments in rail operations will optimize our integration into the global pulp and paper markets, ensuring greater speed, operational efficiency and lower costs for production distribution
GRI 103-1, 103-2, 103-3
The new expected capabilities will generate opportunities to maximize chain results, although requiring deeper analyzes of the sales, production and logistics scenarios. Always seeking the best global results, the Company’s entire S&OP process is currently under review, supported by the acquisition of a specific, robust and internationally recognized tool This tool connects the company’s entire sales, production and logistics chain, from the pulp and paper commercial strategy to the supply of the conversion units, ensuring a high level of service for customers at competitive costs.