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Specialty Paper Business

Anticipate the changing external environment and actively proceed with global development

Business Strengths and Characteristics

The main product types of the specialty paper business division are premium printing paper, “fancy paper,” paper for industrial use, communication paper, specialty processed products, specialty fiber boards, functional paper, and more. Among these, products such as abrasive-coated base paper, adhesive postcard base paper, and chip carrier tape boast a large share of the domestic market. Going forward, we plan to further strengthen our competitiveness and revenue-earning capability in the global market.

Business Environment and Performance

Total shipments by the Specialty Paper Business Division in 2015 totaled 101% of shipments for the previous year. Shipment has been firm for information paper and specialty paper in some areas such as the packaging and the food products sector. Fancy paper products in general are going through hard times as the market for catalogues, pamphlets and the like shrinks and paper continues to be downgraded as users demand cost reduction, but our high-quality printing paper continues to produce results led by rough gloss paper. In the functional paper field, shipments have been strong for carrier tape demand for a variety of smartphone and automobile parts and components, resulting in a 103% increase year-on-year for domestic delivery and exports combined.

Production of specialty paper by product type Production of specialty paper by product type

With regard to exports, our performance was 111% compared to the previous year, a 10% increase caused by sales of new proceeded paper or paper for Shanghai Toh Tech, Co. Ltd. in China, where sales have continued to be favorable. We plan on further expanding export sales in 2016, seeking to achieve a scale expansion in overseas markets.

Future Business Strategy

Numazu Engineering Department Vulcanized fiber machine

Hokuetsu Toyo Fibre, which handles the manufacturing and sale of vulcanized fiber products and paper

The Specialty Paper Business Division combined the strengths of our three domestic mills (Nagaoka Mill, Osaka Mill, and Kishu Mill) and our four consolidated subsidiaries (Hokuetsu Toyo Fibre Co., Ltd., Shanghai Toh Tech, Co., Ltd., Bernard Dumas S.A.S., and HK PAPER (USA), INC.), and in conjunction with the business areas of our subsidiaries the entire Group has been focused on business expansion. The efforts over these past few years have put us on a steady path, and we will continue to promote the strengthening of our business in the future as well.
Furthermore, in order to engage in new product development that accurately identifies customers' potential needs, we are developing measures under the following four points.

  • (1) Strengthen marketing-oriented technology
  • (2) Strengthen new product development ability that accurately identifies customer needs
  • (3) Promote further global business development
  • (4) Reconstruction of an optimal production system and optimal sales structure

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Making the Specialty Paper Business Division into two sales departments

The Specialty Paper Business Division covers a broad range of industries. In order to conduct sales activities with a stronger customer perspective, we created two sales departments, the Fancy & Media Paper Sales Dept. and the Performance Materials Paper Sales Dept. as of January 2016.
Through close cooperation between these two sales departments in each field with the Nagaoka Mill, Osaka Mill, Kishu Mill, and domestic and international affiliated companies, we can proceed with stronger development and cultivation of new products and customers in each field.

Fancy & Media Paper Sales Dept.

Our exhibition booth at “Paper Restaurant 2015”

In the Fancy & Media Paper Sales Dept. there has continued to be a decrease in demand for fancy and media paper just as with general printing paper, but through the launch of new products and proposals such as oil resistant paper for the food industry field where the demand is strong, we are continuing to engage in the promotion of sales.
Of those, coloring books for adults using our fancy paper, SLIGHT, was featured in the media, and sales of SLIGHT have continued to be favorable. Instead of using drawing paper that is normally used in coloring books, the coloring books for adults uses our fancy paper, SLIGHT, that has been processed with a special pattern.
Its merit lies in the smooth, comfortable coating, and we plan to take advantage of this feature in future sales development.
Exhibiting at various exhibitions serves as excellent PR for Hokuetsu Kishu Paper products, and we will continue to strive to increase customer satisfaction.
In October 2015, we supported and also exhibited at “Paper Restaurant 2015” which was organized by the Japan Papercraft Association and was held at the headquarter building of Toppan Forms.
This year's theme was “The Story of Taketori, Born from Paper.” Together with exhibitions of works by paper artists, there were also workshops to enjoy paper craft such as origami, and we conducted PR activities by exhibiting the origami base paper that we provide to origami manufacturers as well as YAYOI COLOR. The Papercraft Association is planning an event with paper In FY2016 as well, and we will again support and exhibit to share how interesting paper can be.

Performance Materials Paper Sales Dept.

The Performance Materials Paper Sales Dept. had been handling sales of air purification filters using glass fiber sheets that were produced at the Nagaoka Mill, but through technical exchange with Bernard Dumas S.A.S. they have started the manufacturing and sales of battery separators for automobiles using glass fiber sheets. We expect to see continuing expansion of demand in battery separators for automobiles, and we are proceeding to prepare a system that will cover the global market with three production bases in Japan, the US, and Europe. In particular, we are focused on establishing a production base in North America as early as possible.
In terms of the development of the HOCTO business for carrier tape, we are aiming to further expand our presence in the international and domestic electronic components markets which we expect will continue to expand in the future.
Also, we hope to take advantage of the strengths of Shanghai Toh Tech, Co., Ltd., which is the processing company for carrier tape, and plan to improve our sales capabilities even more.

Core products of the Performance Materials Paper Sales Dept.

Battery separators

Filters for air purification

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