April 22, 2025 - The following is a written announcement from Fujitaka Mizushima, Managing Director of Mitsubishi HiTec Paper Europe GmbH, regarding the planned restructuring and rumors in the press:
Ladies and Gentlemen,
Since entering the German market in 1999, Mitsubishi Paper Mills Limited (hereinafter MPM) has supported the German business of Mitsubishi HiTec Paper Europe GmbH (hereinafter MPE) through repeated investments, technical support, and other measures to ensure the continuity of the Bielefeld business. In recent years, financial results have been very poor due to intensifying international competition and rising energy prices. Therefore, MPM has provided additional investments of more than EUR 100 million to ensure business continuity.
Due to inadequate and inappropriate corporate management in the past and the current labor law requirements, MPE's financial results have remained at a low level. Starting in 2024, after I joined MPE as Managing Director, we will work to improve profitability. This includes, among other things, revising our inventory strategy, including the construction of a new finished goods warehouse, and reducing costs through the review of various contracts. Due to increasing international competition, we are not yet in a position to generate profits.
There are fears that demand for thermal paper, our main product, will decline. For example, the new coalition government in Berlin has announced that it will abolish the retail receipt requirement introduced in 2020. Furthermore, future market conditions are uncertain, including tariff policy in the US.
However, the productivity of the key paper and coating machines introduced after MPM's investment is competitive compared to other competitors. It is possible to transform the company into a profitable venture. This requires reducing costs and improving efficiency through a fundamental review of all operations, effectively utilizing competitive assets, and focusing on profitable markets and products.
Unfortunately, the Flensburg plant, which was sold in 2023, went bankrupt in January of this year. However, I believe the Bielefeld plant can be revived. My plan is to carry out the necessary restructuring in the most socially acceptable way possible, naturally taking all legal requirements into account, and I want to maintain a constructive dialogue with the works council and the unions.
In agreement with the works council and the union, we will transition to a new structure as quickly as possible and transform the company into a competitive and sustainable enterprise so that we can continue to make our contribution to Bielefeld society. This way, we will remain a member of the city of Bielefeld in the future.
I hope that all those involved and interested parties will understand this.
Fujitaka Mizushima
Managing Director
Mitsubishi HiTec Paper Europe GmbH
Mitsubishi HiTec Paper produces and distributes high-quality coated thermal papers, inkjet papers, and carbonless papers. The company's paper mill in Bielefeld, East Westphalia, Germany, utilizes state-of-the-art coating technologies with a total capacity of 145,000 tons per year for coating its specialty papers.
SOURCE: Mitsubishi HiTec Paper Europe GmbH