Dec 26, 2013
– Oji Holdings Corp.
By
Sandy Yang
Headlines are rewritten for editorial clarity. The original story and headline begin below.
Original Headline:
Announcement concerning Promotion of Business Portfolio Restructuring
Paper, Pulp & Cellulose
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.
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
Resuming production facility
|
|
Oji Materia Fuji No.1 Mill #N-1 paper machine
|
Main product after conversion
|
|
Production capacity (corrugating medium)
|
|
|
|
|
Terminating production facility
|
|
Oji Materia Fuji No.2 Mill #10 paper machine
|
|
|
|
|
|
|
Terminating date(scheduled)
|
|
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.
Terminating production facilities
|
|
Oji F-Tex Tokai Mill Fujinomiya Factory
|
|
|
|
|
|
|
White board and other paperboard
|
|
|
|
|
Terminating date(scheduled)
|
|
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
Terminating production facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terminating date( scheduled)
|
|
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.
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.
