For investment of R$1.6 billion, the unit to be built in Piracicaba (SP) will have annual capacity of 240,000 tons of corrugated board
São Paulo, – Klabin, Brazil’s largest producer and exporter of packaging paper and sustainable solutions in paper packaging, announces investment of R$1.6 billion to build a corrugated board packaging plant in Piracicaba, São Paulo. The new plant, whose startup is scheduled for the second quarter of 2024, will have annual production capacity of 240,000 tons of corrugated board.
The capital expenditures related to the project, which will begin in 2022 and extend through 2024, will be funded by the Company’s cash position. With the startup of the plant and the other packaging expansion projects already announced, Klabin’s new installed capacity will reach approximately 1.3 million tons of corrugated board packaging annually, effectively consolidating its leadership in the segment in Brazil and reinforcing its integrated, diversified and flexible business model.
Christened the Figueira Project, the plant will feature the latest technology to ensure higher operating efficiency and optimize Klabin’s operations. The project’s scope initially comprises the installation of two corrugator machines and nine printers. The production unit will be built on a 950,000-square-meter lot that offers the space to receive future expansion projects related to recycled paper and corrugated board packaging.
Douglas Dalmasi, executive officer of Klabin’s Packaging Business, explained that the Corrugated Board segment serves key sectors, such as food, which historically outpaces GDP growth and has been driven in recent years by the trend of more sustainable consumer habits and growing e-commerce. “Klabin is building an important foundation for the future in sustainable packaging, anticipating market trends and, most importantly, preparing for the demands of tomorrow. The construction of this unit with high productivity and new technologies marks yet another milestone in this expansion cycle, further reinforcing our commitment to supporting our clients’ growth and their new products while expanding our footprint in Brazil’s Southeast, the country’s largest consumer market,” said Dalmasi.
Klabin currently is experiencing a highly favorable moment in the market, with important investments ongoing. In February 2022, the Company announced investment of R$188 million in expanding its corrugated board packaging production unit in Horizonte, Ceará. In 2021, it announced investment of R$342 million in special and expansion projects, most of them targeting expansion in its packaging production capacity.
In 2020, the Company acquired International Paper’s corrugated board packaging and packaging paper operations in Brazil, in a transaction worth R$330 million.