The Inter-American Development Bank (IDB) has joined efforts with Klabin S.A. to finance the construction of a new state-of-the-art greenfield pulp production mill in the municipality of Ortigueira, Brazil.

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IDB Group supports Klabin S.A. in the construction of a pulp mill in Brazil

Mar 19, 2016. /Lesprom Network/. The Inter-American Development Bank (IDB) has joined efforts with Klabin S.A. to finance the construction of a new state-of-the-art greenfield pulp production mill in the municipality of Ortigueira, Brazil. Through an A/B loan of $300 million, the IDB Group has provided Klabin with long-term financing to develop Project Puma - the largest private investment in the history of Parana, as the company said in the press release received by Lesprom Network.

Puma project will create approximately 8,500 jobs during the construction phase and 1,400 once it becomes operational.
The new mill will be self-sufficient in electricity, thanks to a 255 MW biomass facility that will sell 56% of its energy surplus to the national grid. It will have one of the lowest pulp production costs in the world and an installed production capacity of 1.42 million tons of pulp per year. Puma will also strengthen local infrastructure through investments in railways, road networks and port facilities.

The IDB Group has also mobilized $500,000 from the Global Environmental Fund (GEF) to support Klabin in the construction of wildlife-friendly corridors within the project site, as part of a globally significant biodiversity hotspot called Mata Atlantica.