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Paper Processing Business

Proceed with business development that will produce new value while focusing on growth fields

Business Strengths and Characteristics

The Hokuetsu Kishu Paper Group's Paper Processing Business is handled by our consolidated subsidiary BF and Package Co., Ltd.
As the Group's Paper Processing Business Division for the Hokuetsu Kishu Paper, we generate group synergy by coordinating with the other three business divisions which produce various types of paper, and we are proceeding with business development that takes advantage of our strengths in being able to handle start-to-finish production from base paper to end products.
Not only does it handle product-out in terms of selling products after they have been manufactured, it also serves as a base to help with ideas for market-in by conducting product development that reads the opinions and needs of customers, and providing total paper processing services through integration with production and sales departments.

Business Environment and Performance

FY2015's business environment continued to be structurally challenging, but with the opportunity of the merger of our two consolidated subsidiaries (Hokuetsu Package Co., Ltd. and BF Co., Ltd.), and as a result of strengthening sales capability and efficiency in each of our businesses, revenues and income were up compared to the same period of the previous year.
The Liquid Container Division which accounts for more than 50% of sales is importing supplies of base paper.
For that reason, significantly improving costs through internal efforts such as a revision of product pricing and a review of our procurement strategy along with hedging against exchange risk resulted in a recovery in profitability.
In the Paper Ware and Processed Paper Division, in addition to orders received for new items and large-scale projects, orders received for metallized paper such as for use in cosmetics packaging were favorable and this led to an extension in sales.
In the Business Form Division (printing, DPS, etc.), revenue decreased due to the effect of the market which has seen a continuing decline in domestic demand and competition in product pricing.

Future Business Strategy

Through the merger in 2015, the business area of BF and Package Co., Ltd. has expanded, and in the two production departments under the umbrella of the Kanto Mills we are producing products under the following fields.

  • (1) The liquid paper containers field that has an extensive track record with the Tohei Pak-brand
  • (2) The paper ware field including primary food containers used in convenience stores
  • (3) The processed paper field that handles top quality laminated products such as high-performance paper and decorative paper
  • (4) The form printing field such as slips and computer-scored answer sheets
  • (5) DPS (Data Processing Service) field with communication processing, data processing, and printout processing
  • (6) Label tags and cards equipped with miniature IC chips RFID (Radio Frequency Identification)

Sales Ratio by Divisions in FY2015 (%) Sales Ratio by Divisions in FY2015 (%)

We plan to engage in efforts to expand the export balance with the expansion of the business scale for the principle paper ware and processed paper fields in which continued stable growth is expected, while simultaneously pursuing expansion in profits by reviewing our existing business weight in light of the outlook for profits and competitiveness in the market. Furthermore, we aim to pursue improved product quality and strengthen brand power in all of our business activities and processes, from proposals to customers and product development up to production and delivery.
Based on this sort of business strategy the new company will continue to strive to generate new value and create products that are even more appealing to our customers of the four core businesses of the Hokuetsu Kishu Paper Group.

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The Source of Value Creation—BF and Package Co., Ltd. Kanto Mills

Katsuta Production Dept.

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Products in the paper ware field such as paper ware, food packaging, and confectionary boxes used at convenience stores and supermarkets, and products in the processed paper field used in medicine and cosmetics packaging including high-performance paper and decorative paper, and products belonging to the Tohei Pak-brand in the liquid paper containers field are all being produced at the Kanto Mills Katsuta Production Dept.

Primary food containers are being produced in the paper ware field, so this is becoming a production facility that has thoroughly implemented health and safety management such as equipping the facility with air showers to prevent contamination by foreign substances before entering rooms. We constructed a traceability system, and using the materials of Hokuetsu Kishu Paper and the Processed Paper Division, we are proposing the optimum materials and shapes for customers' applications.

Tokorozawa Production Dept.

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Products in the form printing field which handles commercial printing of slips and delivery documents etc., the DPS field which handles print out processing of data such as invoices and inserts into envelopes and seals them, and the RFID field which produces tags equipped with miniature IC chips, are all being produced at the Kanto Mills Tokorozawa Production Dept.

In the DPS field, we handle customers' important personal information and safeguarding that confidential information is vital to the execution of our business. At the Tokorozawa Production Dept., we have been implementing thorough measures to prevent man-made accidents such as information loss by surveillance using a 24-hour Operational monitor camera in addition to access control using IC cards.

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