Pulp Business
Major Initiatives and Achievements in FY2024
Establishment of a stable pulp production structure and material procurement
In FY2024, amid recovering overseas pulp market conditions, we achieved growth in both sales and profit, driven by Canada-based Alberta-Pacific Forest Industries Inc. (Al-Pac) increasing the share of coniferous pulp in its production, along with steady production and optimized sales. Al-Pac also engages in the sale of electricity produced with maximum use of biomass. As an initiative to expand electricity sales and further reduce CO2 emissions, the company is undertaking energy conservation projects that include the expansion of its power generation capacity through the installation of water-cooled condensers and upgrades to facilities to reduce the use of steam in the chip production process. Our pulp business in Japan procures raw materials from multiple countries and suppliers to build a sustainable supply chain. By securing multiple transport systems – trucks, railway freight cars, coastal shipping vessels, etc. – to address business continuity planning (BCP), we deliver products in the quantities and at the arrival times requested by customers.
Business Strategy Going Forward
Further strengthening of our production and procurement structure
Al-Pac is working to improve and reform its organizations and management structure to eradicate production problems and stabilize operations. Furthermore, the company continuously investigates conversions to high-efficiency equipment and drafts and implements medium- and long-term capital investment plans to combat the aging of production equipment. Although the company foresees a decline in profit in FY2025 due to the first scheduled repairs made in 18 months, it aims to maximize profit through stable production enabled by the performance of assured maintenance. Our pulp business in Japan strives to maintain a robust raw material supply chain while achieving synergies such as reduced costs and greater production efficiency. We do so by sharing logistics know-how and papermaking technology with Daio Paper Corporation under our strategic business alliance.
Major Initiatives and Achievements by Our Overseas Group Companies in FY2024
Bernard Dumas S.A.S.
Major Initiatives and Achievements in FY2024
In FY2024, the proliferation of AGM batteries* in Europe and associated battery replacement demand supported strong sales of battery separators. Bernard Dumas maintained its market share and expanded sales in the U.S. While maintaining its European market share, the company aims to expand its share outside of Europe by enhancing production efficiency.
* AGM battery: A type of storage battery used for applications including uninterruptible power supplies in automobiles.
Initiatives to Promote Sustainability (ESG) Activities
Bernard Dumas S.A.S. has obtained certifications including ISO 9001, ISO 14001, and IATF 16949 as it strives to preserve the environment and maintain product quality.
Shanghai Toh Tech Co., Ltd
Major Initiatives and Achievements in FY2024
In FY2024, Shanghai Toh Tech’s sales volume recovered as inventory drawdown progressed in the market and the company’s shipments aligned with real demand. The company also worked to diversify its customer base, and has had some success. In FY2025, the company will advance the development of new products in cooperation with our Nagaoka Mill and will develop new sales channels.
Initiatives to Promote Sustainability (ESG) Activities
In recognition of its initiatives to improve the workplace environment, Shanghai Toh Tech Co., Ltd. was commended by the Shanghai Municipal Health Commission as an outstanding exemplar of support for workplace health by a small and medium-sized enterprise in Shanghai in FY2024.
