PaperAge Magazine

Nippon Paper Subsidiary Kitakami Paper to Cease Production and Sales on July 31

newsprint Established in January of 1948, Kitakami Paper is located in Iwate Prefecture, a prefecture in the Tohoku region of Japan. The company primarily produces and sells newsprint, linerboard, corrugated medium.

Jan. 16, 2018 - Nippon Paper Industries Co., Ltd. said that its consolidated subsidiary, Kitakami Paper Co., Ltd., has decided at the meeting of the Board of Directors held today that it will withdraw from all of its businesses on July 31, 2018.

Established in January of 1948, Kitakami Paper is located in Iwate Prefecture, a prefecture in the Tohoku region of Japan. The company primarily produces and sells newsprint, linerboard, corrugated medium.

The two largest shareholders of Kitakami Paper are Nippon Paper Industries (62.9%), and Japan Pulp and Paper Co., Ltd. (34.3%).

In a press release, Nippon Paper explained, “Kitakami Paper, as a paper company of local production for local consumption, has been providing newsprint and linerboard and corrugated medium and others, primarily to the Tohoku district since its establishment in 1948. In recent years, Kitakami Paper had been focusing on the development and sales expansion of products that contribute to the resource recycling, in particular, despite ongoing challenges in the operating environment caused by rises prices for raw materials and fuel, including wastepaper. Under the circumstances, Kitakami Paper had also been promoting thorough cost reductions as well as the price revisions for products. However, with improvements in profitability and the consistent generation of profits unlikely to occur, going forward, it has decided to terminate production and sales, and withdraw from all of its businesses.

“Going forward, Kitakami Paper is considering dissolution and liquidation although a fixed schedule has yet to be decided.”

SOURCE: Nippon Paper Industries Co., Ltd.