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

Kendall Sinclair

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
	Ojitex Haiphong	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	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
	GS Paper & Packaging		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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