Nippon Paper Industries announces that its consolidated subsidiary, Kitakami Paper Co., has decided that it will withdraw from all of its businesses on July 31, 2018.
Kitakami Paper, as a paper company of local production for local consumption, has been providing newsprint and linerboard and corrugated medium and others, primarily to the Tohoku district since its establishment in 1948. In recent years, Kitakami Paper had been focusing on the development and sales expansion of products that contribute to the resource recycling, in particular, despite ongoing challenges in the operating environment caused by rises prices for raw materials and fuel, including wastepaper. Under the circumstances, Kitakami Paper had also been promoting thorough cost reductions as well as the price revisions for products.
However, with improvements in profitability and the consistent generation of profits unlikely to occur, going forward, it has decided to terminate production and sales, and withdraw from all of its businesses.