Company: Klabin
Factory: Lages Plant
Product: Industrial Sack Kraft Bags
TPM kick off date: October 2006

1. Organization ProfileKlabin is a producer of timber, pulp, packaging papers, carton board, corrugated boxes
and sack kraft bags, acting in domestic and international markets based in its sustainability
principles for all activities related to its products and services. Founded 123 years ago, it
has 22 units in Brazil and one in Argentina. It is the biggest paper producer, exporter andrecycler of Brazil and worldwide leader in its acting segments. The company has a sales
volume of 3.189 million tons showing gross revenue of R$ 4.3 billion (US$ 1.03 billion).
We are the only Brazilian company in the pulp and paper sector to be included in theWorld Sustainability Index of Dow Jones, which highlights the companies with the best
global performance based on economic criteria, environmental and social in long-term.
Sack kraft value chain (paper and conversion) takes 10% of the company revenue, andLages Plant has an annual capacity of 106.000 tons, and 790 million bags, which makes
this the biggest industrial bags plant in the world. In Brazil we have 52% of the market
share.

Lages Plant Portfolio showing our multiple products.

Lages plant counts on 1015 collaborates, and production operates 24 hours / 7 days week
in rotational shifts journey. The main processes are distributed as:A) Sack kraft paper coils warehouse with material handling of 9.000 ton/month;B) Paint production area with capacity of 160 ton/month;C) Printing pre process machines with capacity of 2.100 ton/month;D) Eleven production lines divided into tuber and bottomers with capacity of 66 million
bags/ month.
E) Outbound area processing 30.000 pallets/month.

Lages Plant
2. Milestones on the Journey of Manufacturing Excellence
In October of 2006 we launched in Lages Plant the TPM philosophy named as“Klabin Superar Program”, which was an expansion of the program started on Klabin
paper plants.
Beyond 2006 and 2014 the constant certification maintenance of ISO-9001,
ISO14001, and FSC – Forest Stewardship Council brought the implementation of several
improvement projects.

By the beginning of 2015, with the support of PCM consultant, Lages started to implement
the TPM methodology based on the JIPM concepts, and the pillars started to work withmaster plans and tools aligned to the plant vision, which was Security as a value, quality
for customer satisfaction and costs waste elimination.
To evaluate performance in continuous improvement, always focusing on delivering
excellent results, the Klabin SUPERAR Seal was created on 2020. Recognition includes
seals, which range from from bronze to diamond, in the following categories: basic,intermediate and advanced. Klabin SUPERAR seal was created to strengthen theintegration and unity of all around an objective: valuing people and improving processes.
“Klabin Superar” turned into our management system, and next step is theintegration of the Superar seals implementation and the aiming for TPM Awards. Thejourney is to begin by 2023 with the aiming of “ Award for TPM Excellence, Category
A”as shown below.

Plant vision road map for internal and external TPM certification

3. Benefits Achieved
Impact of the TPM implementation on our PQCDSME vision.
KPI

Unit

BetterPresent status from2018 to 2023

Productivity for main products

Vol/HC/Month

223,52% increased

OEE - Main Products%

26,39% increased

Breakdowns - A Equipments

Breakdowns/ year

55,26% reduced

Number of customer complaints

Number/year

52,18% reduced

In-line defect rate (scrap)%

9,67% reduced

Total Waste%

13,59% reduced

C

Cost index

Cost/Unit
Cost/Kilogram

28,18% reducedD

Production volume

Unid/Day

4,26% increased

S

Frequency rate

Number ofoccupational
accidents with leave
for 1 000 000 worked
hours

40,84% increased

M

Number of Employee Suggestions Number/year

76% increased

EEnvironmental Index

18% increased

PQ%

4. Key of our Manufacturing ExcellenceKlabin has established as the first item of its sustainability policy the search forcompetitiveness quality aiming the sustainable improvement of the results, processcontinuously improvement, products and services to attend our customer expectation,
workers, shareholders, community and suppliers. Based on this premises, Klabin has done
the major volume of investments of its history.
We invest in a management system that allows us to develop people through their growthwithin the TPM implementation.

Our main strategy is based on a concept named pyramid inversion, where we put shopfloorpeople on the top focus, making areas and pillars work as support to develop theirautonomous and decision make abilities.

Employees gathered after the 2st Assessment Excellence Award
Our strategy for long term is maintaining the competitiveness and market
leadership based on Security, quality of our products, qualification of our workers and in
the relationship with our customers and suppliers through continuous innovation andadequate costs.
Valuing people, improving processes, that is our compromise.