Press Release from 2023-01-24 / DEG

DEG finances family business Klingele in Brazil

Environmentally-friendly technologies and use of renewable energies are key to making paper manufacturing energy-efficient. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, is now providing a long-term loan totalling EUR 40 million to the Brazilian subsidiary of the Klingele Group for investment to fund expansion. The investment is intended to make the local production of corrugated raw paper cardboard more efficient and environmentally friendly. The total amount invested comes to over EUR 100 million.

EUR 40 million for sustainable corrugated raw paper cardboard production

Headquartered in Remshalden, near Stuttgart, Germany, the Klingele Group is one of the country’s leading corrugated cardboard producers. With a workforce of around 3,200 across 24 locations in Europe, Africa and Latin America, Klingele manufactures paper and packaging solutions made from corrugated cardboard. To do so, the company uses sustainable products such as corrugated board sheets made from recycled paper or sustainable virgin fibre paper. In 2021, Klingele acquired a paper mill in the Nova Campina region in the federal state of São Paulo that had been in existence since as far back as 1930. Klingele Paper Nova Campina Ltda. (Klingele Brazil) primarily manufactures a robust grade of paper that is used for the production of corrugated cardboard.

Hydro power and biomass to deliver CO2 savings

The company will use the funds to further reduce the consumption of water and energy in its Brazilian production facility. Through an existing hydro power plant and the installation of a new biomass boiler, the company is set to substantially meet its future energy needs from renewable sources. Overall, CO2 emissions are expected to be cut by up to 75 per cent. Klingele Brazil uses only FSC-certified and FSC-controlled wood in its production.

Supporting transformation, strengthening resilience

“With Klingele, we are supporting a German family business that is committed to climate protection and uses renewable energies. The long-term funding will enable the company to invest in modernisation that will enhance the sustainability and resilience of local production,” said Klaus Helsper, head of German Business at DEG. In Senegal, DEG had already provided Klingele with funds from the Africa Connect programme to set up a corrugated cardboard processing plant.

“We are delighted that, in DEG, we have found a reliable partner which supports us as we establish and develop sustainable entrepreneurial activities even in challenging times,” commented Dr. Jan Klingele, managing partner of the Klingele Group.

Having its own production plant in Brazil enables Klingele to deepen its value chain and become less dependent on other raw materials and energy sources. Through the use of virgin fibre paper, which can be used for foodstuffs, the company is also opening up new target groups for its packaging, enabling it to safeguard the existing 560 jobs in Brazil and create a further 50 skilled jobs.