Klabin approves investment plan of $ 6.8 billion in the State of Paraná

World's largest producer of paper for packaging, Klabin has finally its decisive step for entering a new market, pulp, and at the same time advance the model of corporate governance. Yesterday, the company's Board of Directors approved the $ 6.8 billion for installation of the new pulp mill, in the municipality of Ortigueira (PR), whose financing structure involves the formation of Depositary Shares (units) in a public offering of $ 1.7 billion, and listing in the BM 2 & FBovespa Level.
"This operation not only transform Klabin into a larger company, such as [turns] their relationship with the capital markets," said the Director-General of the society, Fabio Schvartsman. The Puma project called investment is estimated at r $ 5.3 billion and the difference of $ 1.5 billion to the total amount corresponds to 107 thousand hectares of planted forests, which belong to the company and that have been incorporated into the project.
The new factory, which will come into operation until the first quarter of 2016, will have a production capacity of 1.5 million tons a year. Of this volume, 1.1 million tonnes correspond to short fiber: initially, 700 thousand tonnes will be available for sale on the market and the rest will supply a new card stock. Other 400 thousand tons are softwood. This type of fiber is totally converted by the company itself in pulp "fluff", used in the manufacture of diapers and absorbent.
"This will be the most profitable project already has news," said the Executive. One of the advantages of Puma, according to Schvartsman, is precisely the possibility of production of three different types of pulp in a single factory-the initial design was changed and the company opted for the use of two digesters, which will make it possible to produce, at the same time, short and long fiber.
In terms of costs, the proximity of forests (with average distance of 74 kilometres from the factory), the surplus of energy that will be sold (144 MW) and operation logistics, among other items, must ensure "the lowest production cost in the world," he says. The estimated value, however, is not revealed.
With respect to short-fiber market, Klabin will seek different segments from those in which they are present the competing producers-the Brazilian Fibria and Suzano Papel e Celulose is the world's largest producers of eucalyptus pulp and are major exporters of raw materials. "Klabin is a company internal market", says the Executive. "Do not see ourselves as a great player of the pulp market. We will be focused on the niche, as fluff ".
The big news of the operation was the absence of strategic investors, involving a new company, Klabin Celulose. According to Schvartsman, the choice of running the investment through own Klabin S.A. departed of controllers who saw more advantages in the proposed model than in the Constitution of another company. "This project [the Klabin Celulose] follows existing and is an alternative. But the company believes have found a better solution, "said the Executive.
By the model chosen, Klabin will create a program of units and each certificate shall consist of a common share and four preferred shares, with level 2 listing on the stock markets. The operation, which will be brought to the approval of minority shareholders in the House still no date set, embeds an award of 15% to the ordinary roles held by controllers and 3% dilution of common shareholders and preferred shareholders minority.
As Schvartsman, a similar program, announced by Contax in the beginning of the year, inspired the proposed transaction by Klabin. Through the supply of units, Klabin intends to receive r $ 1.7 billion, in one of the stages of financing of new pulp mill. The company also will seek resources next to the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) and multinational agencies (ECAs).
The current schedule anticipates that the negotiations with suppliers is closed between July and August, with the beginning of the works in September. In this way, "more than in the first quarter of 2016," says the Director-General, the unit will be in operation. In the same year, Klabin will install in Ortigueira a new card stock, with a production capacity of up to 500 thousand tons per year. Today, the Brazilian company is already one of the largest global suppliers of cardboard to the long life of the Tetra Pak packaging.
With the new factory, the Klabin's pulp capacity rises to 3.2 million tonnes a year, between the raw material for paper production integrated use and for sale on the market. In packaging, the installed capacity is 1.7 million tons per year, in addition to 300 thousand tons of recycled.