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Message from the President

Sekio Kishimoto President and CEO

Achieve further growth as a global pulp and paper manufacturing company by adding a new market pulp business.

To all our stakeholders, I have the pleasure of presenting the Corporate Report 2016 of Hokuetsu Kishu Paper Co., Ltd.

Engaging in business expansion at every stage of the paper pulp business's value chain

The paper pulp industry is still experiencing a severe business environment due to factors that are contributing to a gradual long-term decline in domestic demand for printing paper and communication paper, such as the shift to electronic media. The Hokuetsu Kishu Paper Group has taken various measures in response to this business environment, including expanding exports in the paper business, strengthening business in China in the white paperboard business, increasing production and expanding sales bases for battery separators in cars in the specialty paper business, and working to establish an efficient production system and quality control system in our paper processing business.

Furthermore, we acquired all shares in two Canadian companies, pulp manufacturing company Alpac Forest Products Inc. and sales company Alpac Pulp Sales Inc. (now Alberta Pacific Forest Industries Inc.), making them both wholly-owned subsidiaries. Through this, our group will continue to engage in business expansion at every stage of the paper pulp business value chain, and also strengthen our international competitiveness in the market pulp business.

In our forecast for FY2016, we expect to achieve a record 270 billion yen in consolidated sales and accomplish nearly all of our management goals under the 3-year Medium-Term Management Plan “C-next,” in which FY2016 is the final year. Now we are transitioning as planned to the second phase of our Long-Term Management Plan “Vision 2020.” We are considering strategic investments of several tens of billions of yen in the new Medium-Term Management Plan that we are currently formulating, and we will continue our quest to develop and grow as a global pulp and paper manufacturing company.

Further improvements to environmental measures

Our group has made “minimum impact”* a basic policy, whereby we are actively taking industry-leading measures to reduce any adverse environmental impact to the least amount possible at every stage, from the procurement of raw materials to the manufacture of end products. As a result, we have maintained our top position among the major domestic paper manufacturing companies in Japan for the smallest amount of unit CO2 emissions, which are approximately half the industry average. In particular, at our Niigata Mill, last fiscal year we changed our black liquor concentration equipment to the very latest high efficiency type and this reduced the amount of CO2 emissions even further, while also improving energy efficiency. We will continue to actively invest in environment-related measures that will lessen environmental impact, and implement proactive environmental management policies.

Growing and advancing together with society

Since its establishment over a century ago, the Hokuetsu Kishu Paper Group, as an attractive paper-making company, has continuously devoted itself to paper-making, seeking to contribute to society and earn its trust. Going forward, we will continue to treasure our invaluable relationships with all of our stakeholders, responding to their needs and maintaining their trust, through our business of paper-making.

We ask for your continued support, guidance, and encouragement.

  • * Our vision to keep all kinds of environmental impact to an absolute minimum, and achieve harmony between human beings and nature.

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