MHPS-CBC Receives Orders for Two Large-size Boilers from KLABIN, A Leading Pulp and Paper Manufacturer in Brazil - Simultaneous Orders for one of the Largest-capacity Recovery Boiler in the World and High-performance Biomass-fired Boiler -


Tokyo, March 20, 2014 - CBC Indústrias Pesadas S.A. (CBC), a Brazilian group company of Mitsubishi Hitachi Power Systems, Ltd. (MHPS), has simultaneously received orders from Klabin S.A., one of Brazil's leading pulp and paper manufacturers, for one of the largest-capacity recovery boiler in the world and a high-performance, large-capacity biomass-fired boiler. The two boilers will form the core components in Klabin's Puma Project to create one of the largest pulp and paper manufacturing plant in the world. Delivery of both boilers is scheduled up to the end of February 2016.

The two large-size boilers will be installed in a state-of-the-art plant being built in the municipality of Ortigueira in Paraná state, Brazil. The boilers will support the production of pulp at the plant, which will reach 1.50 million tons per year.

The high-efficiency recovery boiler on this order will feature one of the largest capacity in the world, with ability to process 7,000 tons per day (in solid matter parameters) of black liquor, a liquid used as boiler fuel which is produced during pulp processing, generating high pressure steam for power generation and recovering the chemical products used on the wood cooking process.

The newly ordered biomass-fired boiler will be used for high-efficiency burning of biomass fuel components produced in association with the wood processing for the pulp production: e.g., bark and wood residues. Incorporating CBC's bubbling fluidized bed (BFB) technology, the boiler features a steam generation volume of 280 tons per hour, making it one of the largest-capacity boilers fired with biomass fuel in Brazil.

In addition to the two boilers, CBC will also supply Klabin with auxiliary equipment such as combustion system and stacks. CBC will also handle all related transportation, installation, commissioning and test operation guidance, etc. as a turn-key project.

Brazil is the second most heavily forested country in the world (after Russia). Blessed with rich climatic conditions, Brazil enjoys outstanding forest productivity that has enabled it to become a major producer of pulp used to make paper. All pulp production in Brazil is based on planted forests. In recent years, a number of pulp and paper manufacturers in the country have completed (or are now constructing) super-large-scale pulp plants. When Klabin's Puma Project commences commercial operations in 2016, Brazil is projected to rank as the world's No.3 pulp-producing nation, after the United States and China.

CBC, which is based in Jundiaí city in São Paulo state, is Brazil's largest boiler manufacturer. The company was founded in 1955. Since the MHI Group undertook capital participation in CBC in 1963, the company boasts a long history exceeding 50 years. Through the years it has contributed significantly not only to Brazil's pulp and paper industry but also to infrastructure building in industries for oil refining, chemicals, steelmaking, sugar and alcohol.

Klabin was founded in 1899, operates 16 industrial plants - 15 in Brazil and one in Argentina, focusing markets like packaging paper and board, corrugated packaging and industrial bags. The new pulp project "PUMA Project" is the largest investment in Klabin's history and will double the company's production capacity, adding 1,1 million tons per year of eucalyptus pulp and 0,4 million tpy of pine pulp, mostly to be converted to fluff pulp. Klabin's pine and eucalyptus forests are certified.

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