ABB wins $55 million paper mill contract in Brazil

Automation and power systems help increase output by 50 percent

Zurich, July 28, 2006 - ABB, the leading power and automation technology group, said today it has signed contracts worth $55 million with Klabin SA, one of Brazil’s largest paper manufacturers and exporters, to supply electrical and automation systems for a new paperboard line. ABB’s technology will help boost output by 50 percent.

The new manufacturing line will produce Liquid Packaging Board (LPB), a base material used in liquid packaging. Capacity will increase from 700,000 to 1,100,000 tons per year at Klabin’s Monte Alegre mill in the state of Parana, when the new paperboard line becomes operational. It is scheduled to start production in September 2007.

“This project underlines our continued leadership in advanced solutions for pulp and paper makers,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “By integrating key systems for power, productivity, protection and energy savings, we are helping customers to become more competitive in today’s challenging global markets.”

ABB’s scope of supply includes new automation systems based on the Industrial IT System 800xA platform and upgrades to existing systems for a uniform operating environment. ABB will also supply electrical systems including a 69 kV substation, transformers, refiner motors and protection equipment, process electrification, and paper machinery drives. ABB monitoring and quality systems will be provided to ensure top performance of paper and pulping machinery supplied separately by Voith and Andritz.

The order was booked in the second quarter 2006.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB group of companies operates in around 100 countries and employs about 107,000 people."

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