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

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

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




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

#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




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

 

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


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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