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Management Side
Klabin Acquires Interest in Israeli Startup Melodea Ltd.
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São Paulo, Brazil, South America 07 February 2018 -- Further advancing its innovation strategy, Klabin announces the acquisition of a 12.5% interest in the Israeli startup Melodea Bio Based Solutions, a pioneer in the technology for extracting cellulose nanocrystalline (CNC), a 100% biobased and renewable product. The investment of US$2.5 million will strengthen Klabin's efforts in the areas of Research, Development & Innovation, which is focused on developing bioeconomical solutions for the responsible, efficient and sustainable use of natural resources.

Klabin's goal is to use cellulose nanocrystalline applications to make stronger paper and packaging, 100% recyclable and that can leverage new business opportunities for forestry products. "Melodea's has excellent capacity for developing the CNC technologies, with applications in several industries. Given its high crystalline properties and capacity to form dense and highly cohesive films, CNC is an innovative route for renewable and sustainable barriers for paper and packaging that ensure greater resistance to air, water, vapors and oil, etc., while using a more environmental friendly technology", says Francisco Razzolini, Klabin's Director for Technology and Pulp Business. The project will enable Klabin to further enhance its research, support the performance of its business lines and drive innovation in its forestry base, in ways that are economically viable and environmentally responsible.

The strategy of this promising partnership, which is based on the fundamentals of Klabin's operating efficiency and Sustainability Policy, takes advantage of synergies with Melodea's focus on meeting global demand for innovative materials that substitute fossil-based products. "We have remarkable synergy with Klabin's commitment to innovation and sustainable development and look forward to leveraging their leadership reputation and marketplace resources to advance a next generation of safe and renewable industrial CNC products", says Dr. Shaul Lapidot, CEO of Melodea Ltd.

The deal represents yet another investment by Klabin in its Research Development & Innovation. In the past three years, the company has invested R$70 million in completing and integrating its research and development in the areas of forestry and industry, providing a broad and unified view of the topic. In June 2017, Klabin inaugurated its Technology Center in Telêmaco Borba, Paraná, which works to anticipate trends and to develop new sustainable technologies and applications with laboratories capable of producing a wide array of forestry products and to conduct simulations of the mill's production facilities. The center seeks to anticipate trends and to develop new sustainable technologies and applications.

About Klabin

Klabin is the largest producer and exporter of paper for packaging in Brazil, its only company offering one-stop solutions in hardwood, softwood and fluff pulp, and the leader in corrugated board packaging and industrial bags. Founded in 1899, it has 17 industrial units in Brazil and one in Argentina.

With its entire management guided by sustainable development, Klabin pursues integrated and responsible growth that combines profitability, social development and environmental commitment. Klabin has been a component of the Corporate Sustainability Index (ISE) of the São Paulo Stock Exchange (B3) since 2014. It is a signatory to the United Nations Global Compact and to the Brazilian Pact to Eradicate Slave Labor and seeks suppliers and business partners that share its values of ethics, transparency and respect for sustainability principles. Learn more:www.klabin.com.br

About Melodea

Melodea Ltd.is a pioneer in economically extracting cellulose nanocrystalline from wood pulp and waste products of the pulp and paper production process. The company also develops unique technologies CNC applications to improve the resistance of biopackaging, paper, textile, pharmaceutical goods, cosmetics, paints and adhesives. Founded in 2010 by researchers from the Biotechnology Department of the Hebrew University of Jerusalem, the startup has benefitted from the strategic partnership of the Swedish group Holmen Ab.www.melodea.eu

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