Reinforcement of the supply system for household paper

As demand for newsprint and paper continues to decline, we are shifting our product mix to produce more household paper mainly at the Mishima Mill, our core mill, to maintain and create employment. A paper towel production machine started operation at the Mishima Mill in July 2021, and in October, a second household paper production machine started operation at the adjacent Kawanoe Mill, where the first started operation in 2018. In addition, in response to changes in the demand structure due to increased levels of hygiene consciousness and changes in people’s lifestyles during the COVID-19 pandemic, we installed a facial tissue converting machine at the Kani Mill in September, optimizing the production balance of household paper with other domestic mills and strengthening our ability to provide a stable supply.
Moreover, Kawanoe Mill’s optimal location near the sea is crucial to propelling our multicategory business expansion strategy, as it enables us to export household paper produced at the Kawanoe Mill to China and other parts of Asia efficiently. In China, in particular, the “Toilet Revolution” is underway to improve the sanitary environment of toilets, and we believe that we can contribute to the movement by improving the availability and uptake of flushable toilet tissues.

Household paper machine at the Kawanoe Mill







Antibacterial toilet tissue in China

Shift from graphic paper to packaging paper

In accordance with our strategy to deal with decline in demand for newsprint and paper, we have been proceeding with a shift from graphic paper to packaging paper. Last year, we rebuilt the N7 paper machine of the Mishima Mill into a machine that produces containerboard, thereby preserving the local employment. At the same time, we have launched export of paper to China and other parts of Southeast Asia by taking advantage of our competitive production equipment, which can use pulp for any type of paper, and our location next to the sea.
As we have done for our domestic business, we are striving to establish a highly productive business model for the exports. To do so, while meeting local users’ needs in terms of quality, we have developed DAIO FSC Certified Japan Premium Kraft Linerboard (FSJPK). As a product unsusceptible to market fluctuations and designed for overseas markets, this linerboard is characterized by high burst strength, FSC certification, and a combination of recovered paper pulp and kraft pulp. In China and other parts of Southeast Asia, there is shortage of kraft pulp equipment. This linerboard uses in-house produced kraft pulp for high burst strength, and it also contains high strength recovered paper pulp of stable quality. Hence, it is gaining recognition in our users’ countries as an environmentally-friendly linerboard that can obtain forest certification. This product, highly acclaimed for its high burst strength, high strength, and stable quality, enabled us to expand our customer base and strengthen our profitability more than originally expected. While continuing to proceed with the strategic transformation of our business portfolio, we will develop products with consideration given to solving social issues through our business operations.

converted from a paper machine to a containerboard machine

DAIO FSJPK
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