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Valmet signs a letter of intent with Klabin S.A. for a large pulp dryer delivery in Brazil

Valmet Corporation's press release on March 7, 2014 at 10:30 a.m. EET

Valmet and Klabin S.A. have signed a letter of intent according to which Valmet will deliver two pulp drying lines to Klabin's new plant in Ortigueira in Paraná, Brazil. The start-up of the new plant is scheduled to be in the first half of 2016.

The pulp dryer investment is part of Klabin's Puma project, the largest investment in the company's history, which will double the company's production in three years. The annual production capacity of the new plant will be 1.5 million tons and consists of both softwood fluff pulp and eucalyptus hardwood market pulp.

The value of the Valmet's anticipated delivery will not be disclosed. However, a project of this size and scope is typically valued at EUR 150-200 million.

Significant employment impact

"This pulp dryer delivery to Klabin is already the second big pulp technology project agreement for Valmet this year. Valmet is a leading supplier of key pulp mill technology and the two new projects, Klabin in Brazil and the earlier announced OKI Pulp and Paper Mills in Indonesia, are a clear and positive token of our customers' trust on us globally", says Jyrki Holmala, Pulp and Energy Business Line President from Valmet.

Both of these Valmet's new pulp technology deliveries will have a significant employment impact to Valmet and its subcontractors. The employment impact of Valmet's project delivery to Klabin is expected to be in total around 500 man years mainly in Finland, Sweden and Brazil. Respectively the employment impact of Valmet's project delivery to the OKI pulp mill project, announced 7 February 2014, will be around 1000 man years mainly in Finland, Sweden and China.


Details about the pulp dryer delivery to Klabin

The hardwood pulp drying line will have a capacity of 3,500 tons/d consisting of approach system with screening, wet end, dryer, cutter and three baling lines. The softwood fluff pulp drying line will have a capacity of 1,300 tons/d consisting of approach system, screening, wet end, dryer, calender, reeler, winders and roll handling system. There will be a cutter and baling line included as well as the softwood line will have the ability to produce market pulp. The order includes the machinery, civil works, erection, commissioning, training and start-up.


Information about Klabin S.A.

Klabin, the biggest paper producer and exporter in Brazil, produces packaging paper and board, corrugated packaging and industrial bags in addition to selling timber in logs. Klabin has 16 industrial plants - 15 in Brazil and one in Argentina. The company was founded in 1899 and its capital is 100% Brazilian. More information about the project: http://www.klabin.com.br/en-us/paginas/puma


VALMET CORPORATION
Corporate Communications


Further information, please contact:
Jyrki Holmala, Business Line President, Pulp and Energy, Valmet, tel. +358 10 676 3210
Celso Tacla, Area President, South America, Valmet, tel. + 55 41 3341 4403


Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries. Our 11,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.

Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Our strong technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.

The company has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013. Valmet's net sales in 2013 were approximately EUR 2.6 billion. Valmet's objective is to become the global champion in serving its customers.

Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.

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