Message from Top Management

We will advance our Mid-term Management Plan to achieve our Long-term Management Vision. Sekio Kishimoto Chairman and Group CEO Shigeru Wakamoto President and COO

Based on our Long-term Management Vision "Vision 2030," which aims for sustainable growth, our group launched the "Mid-term Management Plan 2026" in April 2023.
This plan sets numerical targets, including consolidated sales of ¥330 billion, and advances business activities to further enhance corporate value according to three fundamental policies: "Business Portfolio Shift," "Strengthening Competitiveness," and "Promoting Sustainability (ESG) Activities."

1. Business Portfolio Shift

Since its 100th anniversary in 2007, the Group has actively pursued a business portfolio shift, entering the Canadian market pulp business and launching the corrugated base paper business domestically.

Concurrently, the Company holds a 24.8% stake in Daio Paper Corporation, a major household paper manufacturer. This holding is maintained based on its significance for the Group's mid-to-long-term business strategy, including accelerating portfolio shifts and strengthening the business foundation through enhanced partnerships and new business development.
During the three-year Mid-term Management Plan, we will focus on high-value-added products by developing environmentally conscious products that meet customer needs, creating new products utilizing cellulose nanofibers, and expanding the applications of existing products. Concurrently, we will advance our business portfolio shift and pursue further growth by developing new core businesses for the future, including entering new fields through M&A.

2. Strengthening Competitiveness

The Group will further enhance its competitiveness in "Cost," "Environment," and "Safety," pursuing a safe and stable production system while aiming to further improve its industry-leading environmental competitiveness.

Strengthening Cost Competitiveness

Over the next three years, we will implement measures led by the newly established Profit Management Office, including promoting an optimal production system, realizing advantageous purchasing, diversifying raw materials and procurement sources through risk dispersion, improving logistics efficiency, and enhancing operations through IT system utilization.

Strengthening Environmental Competitiveness

The Group formulated the "Hokuetsu Group Zero CO2 2050" initiative in 2020 and is promoting further strengthening of environmental competitiveness to achieve net-zero CO2 emissions by 2050. During the three-year Mid-term Management Plan period, we will promote the reduction of CO2 emissions across the entire Group through the further promotion of green transformation, as well as the conservation of biodiversity through the cultivation and management of company-owned forests and other areas.

Strengthening Safety Competitiveness

The Group is promoting the creation of workplaces where employees can work with peace of mind, safety, and vitality. In fiscal 2022, we became the first company in the domestic paper and pulp industry to obtain ISO 45001 certification, an international standard for occupational health and safety.

3. Promotion of Sustainability (ESG) Activities

In formulating the Mid-term Management Plan, we reviewed materiality (important issues) by carefully examining social demands and expectations as well as the importance of our business, with reference to international standards, and set targets for promoting sustainability activities.
Furthermore, while globalization has driven economic development, it has also brought to light issues concerning respect for human rights, such as widening disparities, increasing poverty, and the outbreak of conflicts. This has led to demands that companies promote initiatives respecting human rights in their business activities. Our Group is advancing efforts to respect human rights. This includes signing the UN Global Compact, establishing the Hokuetsu Group Human Rights Policy, and preparing measures for implementing human rights due diligence.

By advancing these initiatives, we aim to enhance the corporate value of our Group and evolve and grow with an eye toward the next generation, striving to become a corporate group that earns the trust of our stakeholders.