Sao Paulo, Brazil, 01 Jun 2012 -- Klabin plans to purchase a new paper machine for sack kraft paper production. The new machine will be installed in the Correia Pinto unit and will have a production capacity of 80,000 tons/year.

The new capacity is intended to supply the growing industrial bags market and it is scheduled to commence operation in the fourth quarter of 2013.

The new machine, which is being manufactured in Brazil, will consume the surplus of pulp of the Correia Pinto unit, and paper trims generated by the units in Santa Catarina state.

The capital expenditure amounts to approximately BRL 220 million (about EUR 88 million). Klabin will reach a production capacity of 213,000 tons/year of sack kraft paper in 2014.