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.
