Klabin suspends pulp/paper production during annual shutdown of the Correia Pinto Plant

SAO PAULO, April 01, 2008 (Press Release) - From today the 1st until the 12th of April, Klabin, Brazil's biggest paper producer and exporter, is holding its Annual General Shutdown at the Correia Pinto Plant, a procedure during which operations involving pulp and paper production will be suspended. The purpose is to carry out preventive maintenance and installation of new equipment.

One of the General Shutdown's main activities is the washing of the recovery boiler, an operation which requires intensive planning, purchase of materials and the support of overseas technicians.

The estimated expenditures for this undertaking are in the range of R$ 8.4 million, of which R$ 4 million are designated for maintenance, covering labor and materials purchase, and R$ 4.4 million for new investments.

Besides Klabin employees, 1330 workers will be involved in the activities of the General Shutdown. This requires logistics and infrastructure that include transport, lodging and meals among others. In the mill's installations, a widespread campaign of internal communication was planned to make everyone taking part in the event aware of matters of safety, quality in services and organization.

The General Shutdown is significant for the activities of a pulp and paper mill. "As well as seeking to give continuity to the production for the next 12 months, we use this opportunity to implement actions that target gains in product quality and improvements in working conditions. These actions are a part of our Sustainability Policy", states Klabin's industrial director in Santa Catarina, Sadi Carlos de Oliveira.

The event is also of great importance for the region. "The General Shutdown has a positive influence on the regional economy, because there is an increase in the utilization of local services, such as shops, hotels and restaurants and consequently in the collection of taxes", completes Sadi.