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Management Plans

Vision2020

Hokuetsu Kishu Paper Group's Corporate Vision for 2020

  • Be environmentally conscious in all corporate activities and promote environmental management
  • Offer attractive products with excellent quality and competitiveness using advanced technology
  • Work with passion and seek steady growth and ever greater challenges
  • Sales target: ¥300 billion or above (overseas sales ratio: 25%)

Medium-Term Management Plan (Published in May 2017)

1.Background to the formulation of the Medium-Term Management Plan

Following up from G-1st and C-next, this Medium-Term Management Plan has been formulated as the final phase toward the achievement of the Long-Term Management Plan, “Vision 2020.”

2.Name of the Plan

V-DRIVE

  • Variation: Advance on creation of new business fields and business structure reform
  • Value: Improve corporate value
  • Victory: Attain victory through the realization of Vision 2020
  • DRIVE: Accelerate business activities toward achieving the abovementioned “V” goals

 

V-DRIVE

3.Period of the Plan
From April 1, 2017, through March 31, 2020 (three years)
4. Consolidated management indicators
Fiscal year ending March 2020
Net sales: ¥300 billion
Operating income: ¥15 billion
Net sales operating income ratio: 5.0%
ROE: 6.0%
EBITDA: ¥40 billion
Net debt equity ratio: Below 0.6
5.Basic policy and strategy

<Basic policy>

  • ◇Expand overseas business
  • ◇Reinforce the competitiveness of our mills
  • ◇Strengthen the base of our consolidated management system

<Strategy>

  • ◇Expand overseas business
    In addition to reviewing various new investments overseas from upstream to downstream sectors, we will also apply this development horizontally by utilizing our existing businesses in our overseas subsidiaries, including Alberta-Pacific Forest Industries Inc. (Canada), Bernard Dumas S.A.S. (France), and Jiangmen Xinghui Paper Mill Co., Ltd. (China).
  • ◇Reinforce the competitiveness of our mills
    We will deepen and strengthen our environmental management efforts, and put effort into strengthening our competitiveness by striving to build an optimal production system in the paper business and reducing costs in various ways including logistics costs.
  • ◇Strengthen the base of our consolidated management system
    We will put in place thorough compliance management in group companies within and outside Japan while strengthening corporate governance, and also strengthen the base of our consolidated management system as a truly global company.
6.Strategic policy for our four core businesses
◇Paper business
  • Maintain the sale of coated paper, high grade paper, and colored wood-free paper, as well as an annual paper export scale of 300,000 tons.
  • Push forward on the development of special applications, and expand sales of processed base paper.
  • Optimal production and achieve full-fledged cost reductions at the Niigata and Kishu Mills.
  • Build a sales system that is integrated with Hokuetsu Kishu Sales Co., Ltd., and strengthen price maintenance function.
◇White paperboard business
  • Aim to respond swiftly to customers' quality needs, and to develop new products and increase customer satisfaction.
  • Capture demand for primary containers, which is a growth field.
◇Specialty paper business
  • Further strengthen domestic sales, and actively promote business expansion on a global scale through collaboration with the relevant subsidiaries in Japan and overseas.
◇Paper processing business
  • Demonstrate our strength in group-wide start-to-finish production, from the development of materials and base paper for paper containers to processed products, and expand our business in the field of paper processing, where growth is anticipated.

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