By implementing this reorganization of its production structure as part of its Sixth Medium-Term Business Plan FY — FYthe Company will seek to enhance the earning power of its paper business.
As a result, it is planned to transfer partial production of heavy-sack kraft paper, unbleached kraft paper and semibleached wrapping paper currently produced using machine No.
In shutting down the relevant production equipment, the Company will take every possible measure to ensure stable supply and quality for its customers. CNF is a new material that will be core to these endeavors, and Nippon Paper Industries will accelerate its applications in a wide range of industrial fields through large-scale CNF production.
It has also exhibits unique and outstanding features that are not found in conventional materials, such as lightweight, a high modulus of elasticity, good dimensional stability against heat, and high gas barrier property.
In addition to continuing its chemical business operations at the mill, moving forward, the Company will also advance considerations for the mill to become a location for establishing new business operations; including biomass power generation. Based on the technology that highly utilizes renewable forest resources, Nippon Paper Industries will continue to expand business areas to contribute to better living and cultural progress everywhere it does business.
Background and Purpose of Reorganization Since the global financial crisis, domestic demand for paper in Japan has been in a state of structural decline due to development of IT.
Henceforth, Nippon Paper Industries will expand the use of functional CNF with antimicrobial and deodorizing functions.
Moving forward, the mill will seek to utilize its location in close proximity to a major metropolitan area in order to shift towards becoming a production location for household paper products. By doing so, the mill will seek to shrink fixed costs and increase production efficiency and enhance its cost competitiveness as a newsprint production location.