Voith closes contract to rebuild Kruger Paveca tissue machine in Venezuela by 2009

HEIDENHEIM, Germany, June 12, 2008 (Press Release) - Papeles Venezuelanos (PAVECA), a subsidiary from Kruger, Canada, for some years was analyzing together with Voith Paper, several possibilities to reduce the production cost and increase production of its operations in Venezuela.

To achieve those targets, PAVECA opted to acquire from Voith Paper, a large forming section rebuild of the PM 5 located in the city of Guacara, Venezuela. The project includes the supply of a new headbox, a new Crescent former replacing an old Suction Breast Roll former, erection and startup assistance as well as the engineering required. The total investment will be approximately US$ 5.3 million.

After this project is implemented, PAVECA will be able to reduce in 10% the basis weights of its current products, thus, decrease the production cost, increase the PM 5 speed to 1500 m/min increasing its production. Thinking in the future, the new equipments to be installed in this rebuild will be designed for speeds up to 1800 m/min for further production increase.

The delivery and start-up are scheduled for January 2009.

Voith Paper is a group division of Voith and one of the leading partners of the paper industry. Voith Paper optimizes the paper making process with constant innovation.

More than one third of the world's paper production is produced on Voith Paper machines. Voith sets standards in paper, energy, mobility, and service markets. Founded on January 1, 1867, Voith has a current workforce of 37,000, sales of EUR 4 billion and over 270 locations worldwide. It is one of the largest family-owned enterprises in Europe.