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White Paperboard Business

With our top quality/high efficiency/low environmental burden technical strength, achieve a stronger profit base and increase customer satisfaction

Business Strengths and Characteristics

The main types of products are premium white paperboard, special white paperboard, coated duplex board (with gray-back), etc. We feature a wide range of products in order to meet our customers' diverse needs.
The major usages for our products are commercial printing items such as many kinds of packages, catalogs, POP advertising, and postcards; the covers of publications, and so on; our products are used in a widely diverse range of fields.
We will work to further strengthen our profit base, by selling the attractive products created with the technical strength that Hokuetsu Kishu Paper has cultivated for a long time, with its focus on top quality, high efficiency and a low environmental burden, at our domestic production bases of the Niigata Mill and the Kanto Mills (Ichikawa and Katsuta), and also at our overseas production base in Jiangmen City, Guangdong Province, China.

Business Environment and Performance

The domestic production of white paperboard manufacturers from January through December 2015 showed a minus performance of 97.3% compared to the previous year (approximately 1,340,000 tons). From the latter half of the fiscal year there was a slight resurgence due to the effect of inbound demand. Hokuetsu Kishu Paper recorded a slight decrease in production year on year of 98.7% (approximately 280,000 tons).
Domestic demand for white paperboard is facing a gradual decline not only due to structural factors accompanying the population decrease with its low birthrate and aging population, but also from cost-cutting measures by customers that have continued to result in less packaging.

White paperboard production by type White paperboard production by type

On the other hand, there has been a strengthening trend among manufacturers of daily commodities for the paper medium and demand for POP applications is expected to follow a brisk trend. Also, in daily goods, cosmetics, and pharmaceutical products we foresee the continued influence of inbound demand, and we expect that with the addition of the shift to generic drugs we will see an increase in demand for paper applications. In terms of convenience store applications, it is expected that as the range of over-the-counter cooked products, such as fried chicken, continues to diversify this will lead to an expansion in demand for primary containers. We will continue to actively advance our sales activities in these fields, seeking to respond to and acquire market share in new needs.

Future Business Strategy

Slogan:
Challenge, Consider, Responsibility, Communication
Subtitle:
Be thorough about reporting, contacting, and consultation

Based on putting in practice our maximum priority on safety and compliance management, we will achieve a stronger business profit base and increase customer satisfaction.
As this is the final fiscal year of our Medium-Term Management Plan “C-next,” all of our employees in the White Paperboard Business Division including the Jiangmen Xinghui Paper Mill Co., Ltd. in China are working together to ensure profits greater than we have budgeted.

Important Issues

  • (1) Continue management for protection of the environment and compliance, including partner companies.
  • (2) Through integration of production/sales/technology
    • Pursue the ideals for Hokuetsu Kishu Paper quality in the market.
    • Work on the construction of a full production system through optimization of production and creation of our BCP.
    • Aim to further increase customer satisfaction through strict criteria for quality assurance based on a role-sharing chart for quality functions.
    • Aim for the sales department to achieve the sales budget as well as attain reasonable inventory targets.
  • (3) Raising further items for improvement under our platform of implementing prevention measures by investigating the root of operational problems and operational safety.
  • (4) In terms of our white paperboard business operations in China, we will use the combined strength of the White Paperboard Business Division to establish a stable operations and sales system, aiming for stable and positive balance in the early stage.
  • (5) Strengthen cooperation with the Paper Processing Business Division to enhance overall Group competitiveness.

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Our developing China business, which is poised for rapid growth

Stable production and export expansion, new product development

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The Jiangmen Xinghui Paper Mill Co., Ltd. (Jiangmen City, Guangdong Province, China) is positioned as an essential part of our Group's global strategy. Commercial operations were initiated from January 2015, and we have now entered the second year. Quality and operations are stable, and ever since August 2015, sales amounts have been at a level exceeding 20,000 tons per month, with the exception of January-February when economic activity stagnated because of the Chinese New Year. In March 2016, we recorded our highest ever sales of 27,288 tons.
Our customers are centered in Guangdong Province in China, but we also intend to increase sales to the relatively close areas of Guangzhou, Foshan, Zhongshan, and Jiangmen. We are also proactively engaged in efforts to export to neighboring countries, and we began transactions with customers in Taiwan, South Korea, Thailand, Malaysia, Vietnam and India.
As for new product development, we developed bulky products which are much stiffer compared to general products, and began selling them as Grade HI.
Additionally, we are earnestly developing suitable products for blister pack applications. We are aiming for further sales expansion by cultivating new markets and developing new products.

Expanding name recognition in China, proceeding in exchange with Japan

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In May 2015, based on calls from the local government in Shuangshui Town, together with Yinzhouhu Paper-making Base's four paper manufacturers, we exhibited at the “13th Guangzhou International Paper Exhibition.” Held over a period of three days, guests from over 500 companies inside and outside of China attended, and this was an extremely valuable opportunity to promote Hokuetsu Kishu Paper.
Continuing from last year, in July 2016, five local employees from China visited the Niigata Mill and one of the Kanto Mills (Ichikawa) to engage in technical exchange meetings. At the Niigata Mill, they participated in the Safety and Health Convention as well as in the SG event.* In the SG event, they made an announcement about water preservation. By continuing to hold these technical exchange meetings, we aim to improve the white paperboard production skills of local employees in the future and also share various activities that are being implemented across the Group, including initiatives to improve operations and enhance technical skills.

  • * The SG event is a presentation event by small groups about autonomous management activities.

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