ABB wins $33-million pulp mill contract in Brazil

Power and automation support energy efficient production of 1.3 million tons per year

Zurich, Switzerland, Sept. 20, 2007 - ABB, the leading power and automation technology group, has been awarded a contract worth $33 million to provide equipment and services for a pulp mill under construction in Brazil. The new mill, with a capacity to produce 1.3 million tons per year of bleached eucalyptus pulp, will be located in the eastern city of Tres Lagoas, Mato Grosso do Sul.

ABB’s scope of supply includes automation and electrification systems for the new mill, as well as a 138-kV substation. The automation platform will be based on ABB’s Industrial IT System 800xA, which will provide process control along with simulation tools and asset management functions. ABB will also supply medium voltage switchgear, power management and load shedding systems. Intelligent ABB motor control centers will be integrated with the Industrial IT system to optimize the effectiveness of electrical equipment in the mill.

“This project reinforces our position as a key supplier of solutions for the pulp and paper market in Brazil,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “By integrating electrical and automation systems on a single platform, we help to ensure quality, productivity and energy efficiency.”

The project, named “Projeto Horizonte,” is being managed by Poyry Empreendimentos Industriais, a company hired for execution of the project construction. Once the mill starts production, it will be transferred to Votorantim Celulose e Papel (VCP), a company of Votorantim Group, as part of an asset swap between VCP and International Paper in 2006. The project will contribute to VCP´s aim to reach a total of 3.5 million tons per year until 2012 and a total of US$ 4 billion as net earnings until 2020.

Votorantim Celulose e Papel is one of the largest companies in Latin America’s pulp and paper sector, and the leading supplier of coated, carbonless copy, thermal, and other specialized paper types in Brazil. The Votorantim Group is one of the largest private industrial conglomerates in Latin America. The pulp produced by VCP is made entirely from forests planted with eucalyptus, which is known for its sustainability and the high quality paper it produces.

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 111,000 people.

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