Message from the President
We will pursue the Medium-term Management Plan 2026 toward achieving the Long-term Management Vision
The Group initiated the “Medium-term Management Plan 2026” from April 2023 based on the Long-term Management Vision “Vision 2030,” which aims for sustainable growth.
With this Plan, we set numerical targets, including consolidated net sales of ¥330 billion, and promote business activities toward further enhancing our corporate value in accordance with three basic policies: “Shift business portfolio,” “Strengthen competitiveness,” and “Promote sustainability (ESG) activities.”
“Shift business portfolio”
Since our 100th anniversary in 2007, the Group has aggressively shifted its portfolio, and entered the commercial pulp business in Canada and the white paperboard business in China. We also started a containerboard base paper business in Japan.
In addition, we hold 24.8% of the shares in Daio Paper Corporation, a major household paper manufacturer. We continue to hold this asset based on its significance in the Group's medium- to long-term business strategy, such as accelerating our portfolio shift and strengthening our business footing by strengthening alliances and developing new businesses.
During the three years of the Medium-term Management Plan 2026, we will aim for further growth by pursuing a business portfolio shift through the development of new businesses that will become core businesses in the future, including by entering into new businesses through M&A, and focusing on high value-added products, such as by developing environmentally friendly products and new products that meet customer needs as well as expanding the applications of existing products.
“Strengthen competitiveness”
The Group will further strengthen its competitiveness pertaining to “cost,” “the environment,” and “safety,” and pursue a safe and stable production system, while at the same time aiming to further improve our industry-leading environmental competitiveness.
“Strengthen cost competitiveness”
Over the three-year period, our measures will include promoting an optimized production system through the leadership of the newly-established Profit Management Office, realizing advantageous purchases, responding to diversification of raw materials and procurement sources through risk diversification, enhancing logistics efficiency, and improving business operations through the utilization of IT systems.
“Strengthen environmental competitiveness”
The Group formulated “Hokuetsu Group ZERO CO2 2050” in 2020, and is pursuing the further strengthening of its environmental competitiveness in order to achieve net-zero CO2 emissions by 2050. Over the three-year period of the new medium-term management plan, we are moving ahead with further reducing group-wide CO2 emissions through the promotion of green transformation, and preserving biodiversity by cultivating and managing company-owned forests.
“Strengthen safety competitiveness”
In FY2022 the Group became the first company in Japan’s pulp and paper industry to obtain ISO45001 certification, the international occupational safety and health standard. In this and other ways, we are advancing the creation of workplaces where employees can work safely, securely, and vigorously.
“Promote sustainability (ESG) activities”
In formulating our medium-term management plans, we review our materiality by undertaking a careful evaluation of society’s requests and expectations as well as the importance of our business, while referencing international standards etc. We also formulate Group Sustainability Activity Implementation Targets.
Additionally, while globalization is resulting in economic development on the one hand, problems relating to respect for human rights are also surfacing, including widening disparity and poverty and the outbreak of conflicts, and so companies are being called on to promote initiatives for respecting human rights when carrying out their business activities. In addition to signing the United Nations Global Compact and formulating the Hokuetsu Group Human Rights Policy, the Group is moving ahead with initiatives for respecting human rights, including by putting in place responses for undertaking human rights due diligence.
By pursuing efforts such as those listed above, we are aiming to enhance the corporate value of the Group, and evolve and grow for the next generation as a corporate group that is trusted by even more of its stakeholders.