News within the industry of pulp and paper, Jun, 17 2019
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Oji to reduce capacity of graphic paper by 400,000 t/year

Photo: Oji Holding
Photo: Oji Holding
Published by
Simon Matthis - 23 May 2019

Oji Holdings Corporation has worked on restructuring its manufacturing system as appropriate, in response to the structural changes in its domestic demand. Oji hereby announces it has decided to close and remodel the following manufacturing facilities as further measures.

 

Oji Paper Co., Ltd

Tomakomai Mill, #N-5 Machine

Products: Newsprint

Restructuring of manufacturing system: Remodel #N-5 machine to containerboard & kraft paper machine

Capacity reduction: 200,000 tons (Newsprint)

Shutdown: 1st-half of FY2020

Startup: FY2021

 

Tomioka Mill, #9 Machine

Products: Printing and communication paper

Restructuring of manufacturing system: Shutdown

Capacity reduction: 130,000 tpy

Shutdown: End of FY2019

Oji F-Tex Co., Ltd.

 

Ebetsu Mill, #1 Machine

Products: Printing and communication paper / Specialty paper

Restructuring of manufacturing system: Shutdown

Capacity reduction: 45,000 tpy

Shutdown: 1st half of FY2020

 

Ebetsu Mill, #4 Machine

Products: Specialty paper

Restructuring of manufacturing system: Shutdown

Capacity reduction: 15,000 tpy

Shutdown: 1st half of FY2020

 

These measures will result in capacity reductions of graphic paper of approximately 400,000 t/year, cost reductions of \3.7 billion/year, mainly fixed costs, and capital expenditures of \15.0 billion by estimate.

Note that the book value of these facilities was reduced in the previous fiscal year to the recoverable value taking into consideration structural changes in future domestic demand. Therefore, there will be no material impact on consolidated results for the fiscal year ending March 2020.