Oji Paper to close 173,000 tonnes/year corrugating medium PM No. 10 at Oji Materia Fuji, restart 167,000 tonnes/year PM No. N-1; two paperboard machines totaling 70,000 tonnes/year at Oji F-Tex Tokai, two thermal paper coating machines at Nichinan closing
Sandy Yang
TOKYO
,
December 26, 2013
(press release)
–
The Oji Group is now promoting Business Portfolio Restructuring as a center of management strategy and enhancing group management power in order to achieve sustainable growth while reacting nimbly to rapidly changing business environment.
Dec.24, 2013 Oji Materia Fuji No.1 Mill #N-1 paper machine Main product after conversion Corrugating medium Production capacity (corrugating medium) 167,000 t/year Resuming date(scheduled) July 2014 Terminating production facility Oji Materia Fuji No.2 Mill #10 paper machine Main product Corrugating medium Production capacity 173,000 t/year Terminating date(scheduled) July 2014 Terminating production facilities Oji F-Tex Tokai Mill Fujinomiya Factory #B-1 paper machine #B-2 paper machine Main products White board White board and other paperboard Production capacity 41,000 t/year 29,000 t/year Terminating date(scheduled) September 2014 Terminating production facilities Oji Paper Nichinan Mill #3 coating machine #4 coating machine Main product Thermal paper Thermal paper Production capacity 154 million m2/year 425 million m2/year Terminating date( scheduled) October 2014
As a part of this effort, we would like to announce that we made a decision about measures for enhancement of competitiveness in Household and Industrial materials business and Functional materials business.
We will continue pushing forward Business Portfolio Restructuring sooner than others and improve and maximize our corporate value.
1. Oji Materia Fuji Mill / Resuming and termination of paper machine
In order to construct efficient production system and reduce environmental load in Oji Materia Fuji Mill, we are going to convert and resume #N-1 paper machine of Fuji No.1 Mill (Stopped in 2011) and produce corrugating medium, and terminate #10 paper machine of Fuji No.2 Mill
2. Oji F-Tex Tokai Mill Fujinomiya Factory / Termination of paper machine
In order to restructure proper production facility that meets demand, we are going to terminate 2 paper machines producing white board and other paperboard in Oji F-Tex Tokai Mill Fujinomiya Factory, and relegate production and sale of white board products to Oji Materia. Also we will keep considering power generation business utilizing existing hydro generation facility of this factory.
3. Consolidating production of thermal paper
In order to increase profitability, we are going to relegate production of thermal paper in Oji Paper Nichinan Mill to Oji Imaging Media Kanzaki Mill and Oji Paper (Thailand) and terminate #3 and #4 coating machines in Nichinan Mill
Cost reduction of these measures mainly in fixed cost will be about 5 billion yen/ year.
With terminating facilities, in this fiscal year we are going to post an extraordinary loss for business portfolio restructuring cost and there will be no change of financial results’ forecast for this fiscal year (April 1, 2013 to March 31, 2014).
We would like to make assurance doubly sure to avoid any trouble with our customers and other related parties in implementing these measures.
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