Nippon Paper: Transforming the Business Structure at Ishinomaki Mill
News General news
Nippon Paper Industries Co., Ltd. (hereinafter, "the Company") has decided that at the end of May 2022, it will shut down the operation of its coated paper-producing N6 paper machine at Ishinomaki Mill (Ishinomaki City, Miyagi Pref), a key location of the Company's paper business. The Company will transform the business structure of the mill with the assumption that the mill will implement household paper business late FY2023.
Having operated since November 2007 as one of the Company's largest coated paper production facilities, N6 paper machine has continued to supply high quality products to customers. However, the demand for printing paper, including coated paper, is experiencing a structural decline due to the declining birthrate and the advance of digitalization. Combined with changing lifestyles due to COVID-19, we expect that the market continues to show declining trend without sign of a significant recovery in the future.
In 2030 Vision, we will strongly pursue the "shift of management resources to growing businesses". As one of those initiatives, the Company will make use of the production facilities and human resources freed up by shutting down N6 paper machine for its growing business, daily-life products business.
The products of N6 paper machine will continue to be made by other machines at the same mill and other mills of the Company. We will do our efforts to avoid any inconvenience to our customers and other related parties. We look forward to your continued patronage of our products.
