Paper and White Paperboard Business

FY2023 in review

In FY2023, which was the first year of Medium-term Management Plan 2026, we pushed our sales activities in four departments: the Paper Sales Department, the White Paperboard Sales Department, the Product Logistics Department, and the International Export Department. Through communication with various customers, we adapted our sales strategies for demand changes.
Significant yen depreciation has caused a sharp increase in raw materials and fuel prices, as well as pushing up logistics costs. As a result, we have made some adjustments to our product lineup. Meanwhile, we have been facing a noticeable decline in demand for graphic paper, which is our core product in the fine paper business. In addition, we have actively communicated our environmental initiatives to our customers, emphasizing the superior environmental performance of our products and promoting the development of environmentally friendly products.

Summary of the Domestic Paper and White Paperboard Sales Division

■ Paper and White Paperboard Business: Production

■ Major products (brands)

Business strategy going forward

In April 2024, the start of the second year of Medium-term Management Plan 2026, we introduced a new organizational structure with the establishment of the Domestic Paper & White Paperboard Sales Division and the Global Trading Division. We also made a clear delineation between the domestic sales department and the international export department.
The Domestic Paper & White Paperboard Sales Division aims to secure our market share in the Japanese market even amid its challenging conditions, taking into account the price adjustments in FY2022 on both paper and white paperboard. We will strive to maximize profitability through production and sales strategies that adapt to changes.

Paper Sales Department

We will maintain our existing customer share and build new sales channels by highlighting our environmental advantages and proposing paper solutions with an accurate understanding of the highly volatile market. We also establish a flexible production system utilizing our main mills, the Niigata and Kishu mills. With the Profit Management Office, we aim for maximum profitability through optimized production.
In coated paper, we will maintain sales volume by implementing an order-taking system that remains closely aligned with the market and by producing and shipping products to users in a timely manner.
In uncoated paper, we will secure a market share by making targeted approaches to various customers and by managing inventories to minimize the loss of sales opportunities. For our premium Color Woodfree paper, celebrating the 70th year of sales in FY2024, we will focus on stimulating demand through promotional items and strengthening our dealer relationships.

White Paperboard Sales Department

We will recover and further expand sales volumes in various categories, including high-end white paperboard, specialty white paperboard, and coated duplex board, by promoting target users. We will ascertain customers’ needs and work closely with our mills and Product Logistics Department to consistently deliver better products to our customers.
In addition, we aim to expand our sales by developing new products that use plastic-free materials with the Paper Cup Business Development Office and the Product Development Office. We will also continue to engage in face-to-face sales in order to be chosen by our customers so that we will outpace industry standards.

Product Logistics Department

To address the “2024 problem” in logistics, we have introduced a dynamic management system provided by Hacobu, Inc. at each of our mills to manage truck drivers’ wait time. This approach has reduced their wait time substantially; currently, across all mills, the wait time could be minimized within two hours for more than 95% of drivers. Going forward, we will conduct monthly inspections and continue support to maintain this level of efficiency.
As part of our strategic business alliance with Daio Paper Corporation, we have launched three regional groups for the East Japan area, the Central and Kansai area, and the West Japan area, and each group has commenced its activities. We will calculate the benefits this approach brings over the threeyear period from FY2024 and realize the effects of the alliance, such as reducing costs and enhancing transportation efficiency.

CLOSE UP: Reducing the environmental impact of transportation