Voith Paper to Provide a New Tissue Machine for SEPAC

Heidenheim, Germany, 10 March 2008 -- Voith Paper will provide a new tissue machine for SEPAC, located in the city of Mallet, Parana, Brazil. SEPAC aims to become one of the largest Brazilian players in the tissue paper market. The company started a program to enlarge its current plant to increase production capacity with the installation of a new tissue machine and also an upgrade of the existing stock preparation system.

To achieve this objective, SEPAC opted to acquire the equipment from Voith Paper. The project, which requires approximately USD 12 million in investments, includes a new tissue machine with approach flow system, a stock preparation upgrade, peripheral equipment, start-up assistance, training, and the engineering required for the installation of the new VTM 2 tissue paper machine, to be integrate it with the other machines in operation at SEPAC. The investment in equipment and infrastructure, including thermal power, will be around USD 50 million.

The manufacture of the new machine started on March 2007. The start-up is scheduled for June 2008.

After conclusion of this project, SEPAC will increase its production capacity to 65,000 tons/year. The tissue machine will be able to operate at speeds of up to 1600 m/min, producing high-quality tissue paper with basis weights from 14 to 35 g/m² and jumbo roll diameters of 2760 mm.

According to SEPAC´s commercial manager, Sonia Mabile, the company´s revenues may have a significant rise after the expansion. “We are banking on a sales increase, mainly regarding added-value products, such as double-roll toilet paper, which gives a higher profitability to the whole distribution chain,” Mabile said.

SEPAC started its activities in the late 1970s and today is fully dedicated to the production of tissue paper. SEPAC’s product mix includes single and double ply toilet paper, towel, and napkin paper. The products are currently distributed throughout the Brazilian territory and Mercosur.

Voith Paper Sao Paulo provides machinery for more than 50 countries. About 80% of Brazilian writing and printing paper is produced on Voith Paper machines. Additionally, the Center of Competence (COC) for tissue technology, one of the five centers within the Group, is headquartered in Sao Paulo, covering the global market.

Voith Paper is a division of Voith and one of the leading partners to the paper industry. More than a third of worldwide paper production is produced on Voith Paper machines. Voith was founded on January 1, 1867, and has a current workforce of 37,000, sales of EUR 4 billion, and more than 270 locations worldwide.