Oji to reduce capacity of graphic paper by 400,000 t/year

Oji Holdings

Oji Holdings Corporation has worked on restructuring its manufacturing system as appropriate, in response to the structural changes in its domestic demand. Oji has decided to close and remodel the following manufacturing facilities as further measures.

Tomakomai Mill, #N-5 Machine

Products: Newsprint
Restructuring of manufacturing system: Remodel #N-5 machine to containerboard & kraft paper machine
Capacity reduction: 200,000 tons (Newsprint)
Shutdown: 1st-half of FY2020
Startup: FY2021

Tomioka Mill, #9 Machine

Products: Printing and communication paper
Restructuring of manufacturing system: Shutdown
Capacity reduction: 130,000 tpy
Shutdown: End of FY2019

Ebetsu Mill, #1 Machine

Products: Printing and communication paper / Specialty paper
Restructuring of manufacturing system: Shutdown
Capacity reduction: 45,000 tpy
Shutdown: 1st half of FY2020

Ebetsu Mill, #4 Machine

Products: Specialty paper
Restructuring of manufacturing system: Shutdown
Capacity reduction: 15,000 tpy
Shutdown: 1st half of FY2020

These measures will result in capacity reductions of graphic paper of approximately 400,000 t/year, cost reductions of 3.7 billion/year, mainly fixed costs, and capital expenditures of 15.0 billion.

The book value of these facilities was reduced in the previous fiscal year to the recoverable value taking into consideration structural changes in future domestic demand. Therefore, there will be no material impact on consolidated results for the fiscal year ending March 2020.

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