Nippon Paper to shut production facilities at Iwakuni tissue paper mill in Japan; measure to reduce fixed costs and enhance production efficiency

TOKYO, Jan. 17, 2012 (Press Release) - Nippon Paper Group, Inc. (President: Yoshio Haga) has decided to shut down the production facilities at the Iwakuni Mill (Iwakuni-shi, Yamaguchi Prefecture; Manager: Takashi Yamaguchi) of Nippon Paper Crecia Co., Ltd. (President: Kazuhiro Sakai), as a measure to cope with the severe conditions in the household paper products business. These facilities account for about 15% of Nippon Paper Crecia's entire production capacity. Transferring products produced at the Iwakuni Mill to Kyoto and other mills will raise the operation ratio of production facilities to 90% or above. Through this measure, Nippon Paper Crecia intends to reduce fixed costs and enhance production efficiency, thereby strengthening the competence of its household paper products business. After shutting down the production facilities, the Iwakuni Mill is slated for use as a logistics center, aimed at strengthening functions and covering the Chugoku, Shikoku and Kyushu regions.

Nippon Paper Crecia will continue strengthening its production and sales bases, while developing differentiated products to expand profits.

Notes

• Outline of production facilities at Iwakuni Mill

  • One papermaking machine (production capacity: 43,000 tons/year)

  • One tissue paper processing machinea

  • Two toilet roll processing machines

• Timing of facility shutdown

  • End of September 2012 (scheduled)