As part of the 5th medium-term business plan, Nippon Paper Group is working to enhance the competitiveness of its existing businesses and change the business structure so that it can reallocate management resources to the areas that are expected to grow in the future.
While the demand for heavy duty paper bags produced by processing kraft paper is decreasing on a long-term basis, the demand for paper bags for food remains generally strong. Kyouei Seitai excels in the production of paper bags for food. This is precisely why Nippon Paper Group decided to make it a subsidiary company so that its packaging division, which is in charge of the production of packaging, such as heavy duty kraft paper bags, can establish a new system with higher competitiveness both in terms of quality and cost, and strengthen its commercial advantages throughout the entire manufacturing process, from the production of base paper to the processing of paper bags.
