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Empresas CMPC's Guaiba 2 Pulp Facility is 88% Complete as of December 2014

-Facility is on schedule for start-up by the end of 2Q15

-Guaiba 2 will increase CMPC pulp capacity by more than 40% and lower average cash cost of production

-Project investment remain within budget


News provided by

Empresas CMPC

Jan 30, 2015, 07:00 ET

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SANTIAGO, Chile, Jan. 30, 2015 /PRNewswire/ -- Empresas CMPC ("CMPC", "the Company"), a leading Latin American forestry, pulp, paper, tissue and packaging products producer, today announced that its landmark Guaiba 2 Project, in the State of Rio Grande do Sul, Brazil, remains on budget and on schedule for start-up in the second quarter of 2015.

The facility was at 88% physical completion as of December 31, 2014. The main milestones achieved in the project's execution to date include the completion of the electric substation, the startup of the water supply system, the hydrostatic testing of the digester and, most recently, the first ignition of the recovery boiler.

Approved by the Board of Empresas CMPC in December 2012, the $2.1 billion expansion of the Guaiba pulp mill will add 1.3 million tons of eucalyptus pulp capacity, bringing CMPC's total hardwood and softwood pulp capacity to 4.1 million tons per year. The mill is 100% wood self-sufficient, and will lower CMPC's average pulp cash cost. During the construction phase, the expansion employed more than 9,000 highly qualified workers, one third of who were from local communities.

Next steps at the project will include the pre-operational chemical cleaning of the recovery boiler, the steam blow of the pipe lines to the turbogenerators, migration of the control systems to the new control room, putting in operation a chipping line in the woodyard and continuing of the commissioning activities in other systems.

Investor Relations
Trinidad Valdes
[email protected]
+56(2) 2441-2713

Colomba Henriquez
[email protected]
+56(2) 2441-2791

Press
Sebastian Garces
[email protected]
+56(2) 2441-2279

About CMPC
Empresas CMPC produces pulp, paper, tissue, paper, packaging products and other forestry products throughout Latin America. The company aims to deliver world-class products, from forestry to finished products, to our global customer base. Our high quality timber and production facilities are strategically located in countries including Chile, Brazil, Argentina, Peru, Colombia, Uruguay, Ecuador and Mexico, making us a truly regional company with a competitive cost structure. CMPC sells more than 25 different product lines to over 31,000 clients in more than 45 countries, always seeking long-term relationships.

Forward-Looking Statements
This release may contain forward-looking statements. Such statements are subject to risks and uncertainties that could cause Empresas CMPC's actual results to differ materially from those set forth in the forward-looking statements. These risks include: market, financial and operational risks. All of them are described in CMPC's Financial Statements, Note 3 ("Gestion de Riesgos").

In compliance with the applicable rules, Empresas CMPC S.A. publishes this document on its web site (www.cmpc.cl) and sends to the Superintendencia de Valores y Seguros the Financial Statements of the Company and its corresponding notes, which are available for consultation and review on its website (www.svs.cl).

SOURCE Empresas CMPC

Related Links

http://www.cmpc.cl

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