Klabin invested R$ 820 million throughout the first quarter 2020 in its operations and new projects. Of the total invested, R$ 72 million was allocated to forestry operations and R$ 198 million to investments in the operational continuity of the plants that together represent investment in the Company’s operational maintenance. In addition, R$ 23 million was invested in special projects representing projects with a short-term horizon and quick returns. These investments represent cash and are not considered as investments involving the forestry activities of subsidiaries through Special Purpose Entities (SPEs) with the contribution of forest assets booked on Klabin’s balance sheet.
Regarding the Puma II project, so far R$ 1.798 billion have been disbursed, of which R$ 527 million refer to the first quarter of 2020. According to Material Fact released on March 23, 2020, the Company started, by the time, the process of temporary demobilization of the professionals involved in the civil construction and assembly works of the project, in order to broaden the measures of containment of the spread of the Coronavirus, and to safeguard the approximately 4,500 employees so far allocated on the site. Recently, the Company initiated the reintegration of approximately 500 professionals per week, the majority of whom reside in the state of Paraná. Reinforcing sanitary protocols and implementing several measures to tighten up hygiene conditions on site, the full reestablishment of the works and their professionals is still subject to evaluation in the coming weeks of the COVID-19 epidemiological scenario, especially in those regions near the site. Although there is still no precise information about the impacts on the project’s original schedule, whose first paper machine was scheduled to start operations in May 2021, considering the reopening scenario of the economy in the coming weeks Klabin does not expect impacts on the overall cost of the project.
The new expansion cycle approved on April 16 envisages a gross investment of R$ 9.1 billion, comprising the installation of two paper packaging machines with a nominal capacity of 920 thousand tons of paper and situated at Klabin`s Puma Unit where the Company already produces bleached hardwood, softwood and fluff pulp. Klabin has negotiated financing for the project from ECA’s, BNDES, IDB Invest, IFC and JICA.