Klabin invested R$ 998 million in the second quarter 2020 in its operations and new expansion projects. Of the total invested, R$ 47 million was allocated to forestry operations and R$ 39 million to investments in the operational continuity of the plants that together represent investment in the Company’s operational maintenance. Investments in forestry were lower in the second quarter due to the location of Klabin’s forest assets in regions with prolonged drought and the consequent need to postpone planting in some areas. Part of the maintenance investments were also postponed to the second semester, which will concentrate most of the budgeted amount for the year. Despite this calendar effect on Klabin’s investments in maintenance, the budget for 2020 remains unchanged. Also, R$ 4 million was invested in special projects involving operations with a short- term horizon and quick returns with the Company’s strategic purposes in mind. These investments represent cash and are not considered as investments involving the forestry activities of subsidiaries through Special Purpose Entities (SPEs) executed through the injection of forest assets already existing in Klabin’s balance sheet.
As to the Puma II project, to date R$ 2.707 billion has been disbursed, of which R$ 908 million refer to the second quarter of 2020 and R$ 1.435 billion to the first six months of the year. After the temporary demobilization of the work force involved in the civil construction and assembly work at the project site, announced in a Material Fact released on March 23, 2020, the Company partially reintegrated members of the workforce on site during the course of 2Q20. Currently, work on the project’s first packaging paper machine is already 45% complete.
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.