Nippon Paper Group, Inc., which was severely damaged in the Great East Japan Earthquake is a summary of the reconstruction plan.Amid falling prices and lower demand of paper does not stop, aim to come up in this key reform with great pain is something.
Ishinomaki Mill of Nippon Paper Group, Inc., which in mid-September, had stopped operations in the tsunami of the Great East Japan Earthquake (Ishinomaki City, Miyagi Prefecture) has resumed production at some facilities.
Main factory responsible for 20% of Paper production continued, the company’s Iwanuma plant affected by the disaster as well as (Miyagi Prefecture Iwanuma) Nakoso (Nakoso) Plant (Iwaki City, Fukushima Prefecture) Even though the fully restored to May is about half a year company stood aside that was resumed through.
However, Ishinomaki Mill is not back to figure exactly the same as before the earthquake.Haga Yoshio President as had expressed it serves also to as “reconstruction while reducing production capacity and for the future”, in August, Nippon Paper Industries launched “medium-term reconstruction plan” (Figure (1)) to machine the earthquake, I take because a large restructuring.
The paper is roughly divided into paperboard that is used for, such as cardboard and Paper to use for the print, but the plan this time target Paper.Stop the machine of five plants with a total of 12 units across the country to make a Paper, Fuji factory production was less old facilities (Fuji City, Shizuoka Prefecture) to withdraw from the production to stop the machine and all its contents.By around the end of September 2012, a reduction of about 15% production capacity, it is the system of 4.36 million tons per year.
At the same time, staff reductions also dared.(About 850 people regular employees, about 450 people contract employees) about 1,300 hits about 15% of the paper business for the whole, to achieve rationalization, such as voluntary early retirement or stop employment.Ishinomaki factory has just resumed production is also not an exception, and 240,000 tons reduce the production capacity was 1 million tons (including subcontractors) about 100 employees are also the subject of organizing.
Such as by squeezing in 80% of the number of issues withdrew from unprofitable product addition to this, improve the cost of 25 billion yen per year, aiming a 62 billion yen operating profit in 2001.
Why embark on business reform of the largest ever none other, it’s for building a production system that is commensurate with the demand, to perform a price increase.
Is shrinking domestic demand for paper and paperboard.Is expected to decrease by about 15% compared to ’05, falling to 16.52 million tons in the demand for paper of ’11 (Figure (2)).
Lehman shock, demand for foreign paper has plummeted about 20%, especially.Such as promotional materials and advertising publications and newspapers, corporate issues can not be expected to recover and also involves the transition to electronic media.
However, as can be seen from the production of Paper of Nippon Paper, decline, etc. remain to about 10 percent in five years, overproduction is the norm before the earthquake.Because, around ’07, paper companies because were carried out large-scale capital investment in succession.Demand has been growing exceptional at that time coated paper with high visual properties among the Paper, and he was drawing a strategy to turn to exports to increase production worth it tries Uttedeyo abroad.
Was the enthusiastic Among them’s Nippon Paper.It was enhanced hopefully to try to export based in Ishinomaki factory with a dedicated port that is wearing a large ship.
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