energy

Klabin approves modernization project for the Monte Alegre Unit in Paraná

Klabin approves modernization project for the Monte Alegre Unit in Paraná
Klabin Monte Alegre Unit in Paraná.

Klabin, Brazil’s largest producer and exporter of packaging paper and sustainable solutions in paper packaging, and the largest producer of paperboard in Brazil, will modernize the Monte Alegre Unit, located in Telêmaco Borba, Paraná. The Board of Directors of the company approved the project that envisages the installation of a new recovery boiler.

The boiler is an essential piece of equipment in a pulp and paper plant, responsible for the recovery of chemicals used in wood cooking and for the production of steam from the processing of black liquor (fluid that removes components during the paper manufacturing process, such as lignin, extractives, and ashes). The modernization aims to ensure the operational continuity of the Monte Alegre Unit, with gains in sustainability, efficiency, and competitiveness for the plant.

The total investment amounts to R$1.7 billion, including around R$180 million in recoverable taxes, which will be disbursed between 2024 and 2027. The funding will come from the Company’s cash, with no material impact on financial leverage and is  included in the investment estimates disclosed by Klabin in December 2023.

The project is expected to generate up to 1,800 jobs at the peak of construction. The startup of the new boiler is planned for the fourth quarter of 2026.

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