Daio Paper, Tokushu Tokai Paper to acquire 3% stakes in each other to bolster their joint development of disposable diapers, cost-cutting measures in producing toilet paper, corrugated containerboard; deal not to affect Daio's pact with Hokuetsu Kishu

TOKYO , August 12, 2013 () – Daio Paper Corp. and Tokushu Tokai Paper Co. said Monday they will acquire 3 percent stakes in each other by the end of this month, with a view to bolstering their cooperation.

The capital tie-up is aimed at boosting their cooperation in joint development of disposable diapers as well as cost-cutting measures in the production of toilet paper and corrugated cardboard.

Daio Paper has maintained a business alliance with its biggest shareholder Hokuetsu Kishu Paper Co. since their capital tie-up agreement in June 2012.

A Daio Paper official said, "The new business alliance will not affect our relationship with Hokuetsu Kishu because it will cover products that Hokuetsu Kishu doesn't handle, and the ratio of stockholding is low."

(c) 2013 Kyodo News International, Inc.

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