Daio Paper Corporation, the producer of Japan’s top brand household paper products, is planning to install a new state-of-the-art household paper production facility in order to strengthen our structure for stable supply of household paper products (including high value-added products such as lotion tissues) to meet the needs of the market.
In a disclosure, Daio Paper said the matter will be submitted for resolution at the Board of Directors Meeting to be held in September, and in the case that the plan received resolution, it is projected that it will be part of the 3rd Medium-Term Business Plan (the 3-year period from Apr 1, 2018 to Mar 31, 2021).
It is planned for the facility to be installed on the premises of the currently inactive Kawanoe Mill (Shikokuchuo City, Ehime Prefecture).
Projected investment amount is approx. JPY21.0 billion yen, projected production capacity is approx. 4,500 tonnes per month, and production is expected to commence within the fiscal year of 2018 (from Apr 1, 2018 to Mar 31, 2019).
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Leveraging on its prime location adjacent to Daio Paper Corporation’s Mishima Mill, one of the largest coastal paper mills in the world, Kawanoe Mill will be supplied with highly cost competitive pulp and energy from the mill. Hence, Kawanoe Mill will be transformed into a leading edge household paper production factory that provides both high quality and high cost competitiveness.
“Furthermore, in the face of weakening domestic paper demand, this measure of producing household paper products at Kawanoe Mill will advance the structural shift of Mishima Mill, our main paper mill, as well as contribute to the enlivenment of the local economy of Shikokuchuo City, Ehime Prefecture, where Daio Paper Corporation originated,” the company said.
Daio added that the funds for the project will be procured through debt-based financing. There would be no revision to the current business goals of our 2nd Medium-Term Business Plan. – BusinessNewsAsia.com