Fibria and Klabin have approved the signing of an agreement for the supply of eucalyptus pulp (hardwood) that will be produced at the new Klabin plant under construction in Ortigueira, Paraná (Puma Project). With production capacity of 1.5 million tons, which include 1.1 million tons of hardwood pulp, the plant’s operational startup is expected in 2016.

The agreement between the companies establishes a firm commitment for acquisition by Fibria or its subsidiaries of a minimum of 900,000 tons per year of hardwood pulp, for exclusive sale by Fibria or its subsidiaries in countries outside South America. The additional volume produced by the new plant will be sold by Klabin directly as follows: hardwood pulp in Brazil and South America, and softwood pulp and fluff in the global market.

The agreement term is six years, four of which at a minimum volume of 900,000 tons and two years of a gradual reduction of volume (phase out). The volumes for the fifth and sixth years shall be equivalent to 75% and 50%, respectively, of the volume delivered in the fourth year of the agreement.

The sales volume envisaged in the agreement may be reduced at any time, through prior notification, by up to 250,000 tons for a possible future integration into Klabin's packaging paper. The agreement may also be renewed by mutual agreement. The selling price will be based on the average net price charged by Fibria, FOB (Free on Board) at the Port of Paranaguá in Paraná.

Klabin, Brazil’s biggest paper manufacturer and exporter, produces corrugated packaging, industrial sacks and timber in logs.

 

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