Oji Paper plans to build 2.3B yen corrugated, folding box plant near Hanoi, Vietnam, with offset printing capabilities; scheduled start date for April 2013

TOKYO , September 14, 2011 (press release) – Pursuant to the resolution passed at a meeting of the board of directors held on September 2, 2011, Oji Paper Co., Ltd. ("Oji Paper") is pleased to announce that it has reached decision to establish new plant near Hanoi, Vietnam. Oji Paper has two corrugated box plants, in Dong Nai province (Southern area) and Haiphong (Northern area), so it is the third prodcution facility in Vietnam. As having been announced, Oji Paper has expanded its packaging business in Southeast Asia countries. The new plant will be the 14th corrugated box plant in Southeast Asia after GS Paper & Packaging (Malaysia, acquired in April 2010), United Kotak (Malaysia, acquired in February 2011), S.Pack & Print (Thailand, minority investment in March 2011) and Harta Packaging Industries (Malaysia and Cambodia, acquired in August 2011). Oji Paper will be intent on strengthening relationship between these business sites, to improve customer service and enhance our competitiveness.

1. Overview of new plant

(1) Form of establishment The second plant of Ojitex Haiphong Co., Ltd.
(wholly owned subsidiary of Oji Paper, Haiphong)
(2) Location VSIP BacNinh industrial area, BacNinh province, Vietnam
(site area Approx 38,000m2)
(3) Business activity Production and sales of corrugated box and sheet
Production and sales of offset-printed materials for surface of high grade corrugated box
(4) Operation start date April 2013 (scheduled)
(5) Investment amount JPY 2.3billion
(6) Production capacity Corrugated box business
Offset printing business
42million m2 per year
13million m2 per year (include self-consumption)

2.Objectives of new plant

(1) To cater to increasing corrugated board demand in Northern Vietnam
With the steady growth of Vietnam economy and accelerating relocation of production from China by various industries parties, investment in Vietnam has been increasing. Due to this tendency, market demand on corrugated box is also strong, resulting our existing plants have expanded their business successfully. In Particular, the corrugated box market in North Vietnam, including Hanoi and Haiphong, is highly expected to become tighter. The new plant in this area will make us possible to catch the increased demand.

(2) To adapt to demand of higher grade corrugated box
In Southeast Asian packaging market, it is a trend toward colorful printing. Decorative products demand is also increasing in corrugated box products. Oji Paper installs offset printing machine in the new plant to meet such demand and strengthen stability of product quality and competitiveness by in house offset printing for corrugated board surface.

Packaging business area and activity of Oji Paper - in South East Asia -
Country Company Name Area Products
Vietnam Ojitex (Vietnam) Ho Chi Minh (Southern area) Corrugated box
Ojitex Haiphong Exisiting plant Haiphong (Northern area) Corrugated box
New plant Hanoi (Northern area) Corrugated box, Folding Box (Offset printing)
Cambodia Harta Packaging Industries (Cambodia) Phnom Penh Corrugated box, Plastic bag
Thailand S. Pack & Print Sahaki j Bangkok Corrugated box
S. Pack & Print HatYai (Southern area) Corrugated box, Folding Box
Union and Oji Interpack Bangkok Heavy-duty Corrugated box
Malaysia GS Paper & Packaging Selangor (Middle area) Container board, Corrugated box
Penang (Northern area) Corrugated box
United Kotak Johor (Southern area) Corrugated box
Harta Packaging Industries Trio Paper Mills Penang (Northern area) Conrtainer board, etc.
Harta Packaging Industries Perak (Northern area) Corrugated box
Selangor (Middle area) Corrugated box
Johor (Southern area) Corrugated box
Nilai (Middle area, under construction) Corrugated box
Chiga Light Industries Johor (Southern area) Plastic bag

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