We are comprehensively leveraging
assets owned by the Group,
including pulp, renewable energy,
afforestation, and lumber processing
to promote enhancement of the
business.
Yuji Onuki
President, Forest Resources and
Environment Marketing COMPANY
Executive Officer
Oji Holdings Corporation
Segment Overview
In FY2021, we had net sales of 314.5 billion yen (up 69.2 billion yen from FY2020) and operating profit of 55.5 billion
yen (up 38.8 billion yen from FY2020). In the pulp business, we worked to enhance our competitiveness through acquisition
of our overseas sites as wholly-owned subsidiaries and other measures. Sales and profits increased due to an increase
in the selling price of pulp and a recovery in demand for dissolving pulp. In the energy business, while
strengthening the biomass generation business aiming to expand the use of renewable energy, electricity sales decreased
due to an increase in in-house electricity consumption as a result of higher capacity utilization at plants.
In FY2022, net sales of 405.0 billion yen (up 90.5 billion yen from FY2021) and operating profit of 71.0 billion yen (up
15.5 billion yen from FY2021) are planned.
Business Overview
【Pulp Business】
We produce a diverse lineup of pulp grades including hardwood kraft pulp,
softwood kraft pulp, and dissolving pulp. With 2.5 million tons per year
market pulp supply capacity, we are boosting sales globally including in
Asia, Europe and North America.
【Energy Business】
We are promoting the electric power generation business by establishing
and expanding electricity generation facilities using renewable energy, including
wood biomass, hydroelectric power, and solar power. Leveraging
our sites in Japan and overseas, we are also working to strengthen purchase
and market supply of biomass fuels in line with the energy business
expansion.
【Lumber Processing Business】
We are expanding production capacity, and are purchasing and selling
lumber and processed lumber products, primarily in Asia and Oceania. In
Japan, we are also seeking to strengthen profitability through sales expansion
in the building materials field and other measures. We’re expanding
sales at offices we established in China and Southeast Asia.
【Forest Plantation Business】
We grow and manage company-owned forests in Japan and overseas.
Harvested wood are supplied for pulp raw materials, as well as for a range
of applications such as lumber, plywood materials, and biomass fuels.
With the goal of 400,000 ha of overseas forest plantations, we are also acquiring
lands and expanding forest plantations.
【Fuels/Chemicals and Other Material Procurement Business】
Our centralized purchasing team buys a variety of chemicals and raw materials
that are competitive and sustainable. We are committed to environmentally
sustainable and socially responsible procurement in complying
with Oji Group Partnership Procurement Policy.
Dissolving pulp
(for general rayon and special items)
|
CENIBRA
pulp products warehouse
|
Nursery where eucalyptus varieties are
selected and raised (CENIBRA
in Brazil)
|
Expanding Renewable Energy and Other Energy Businesses
＜Business expansion by leveraging fuel procurement
advantages＞
In the energy business, we are expanding the business
with the aim of expanding the use of renewable energy. A
biomass power generation facility in Tokushima Prefecture
being built as part of a joint venture with ITOCHU
ENEX CO., LTD. is preparing for operations to begin in
2022. Additionally, we are reinforcing the biomass fuel
business in conjunction with expansion of the energy
business. In Japan, we are increasing production of fuel
woodchips by making use of unused wood resources.
Overseas, efforts to increase procurement of palm kernel
shells for use as fuel continue in Indonesia and Malaysia,
while ensuring lawfulness and maintaining sustainability.
Enhancement and Expansion of Pulp Business
In the pulp business, we continue to implement strategic
profit measures at key business sites to reinforce business
foundations that are resilient to fluctuations in pulp
markets.
CENIBRA (Brazil)
• Enhance cost competitiveness and sales capabilities,
and consider production increase, upon holding all voting
rights of the company in May 2021
• Install most advanced & work saving manufacturing
facilities
Pan Pac（New Zealand）
• Consider production increase to meet growing demand
for folding cartons
Oji Fibre Solutions（New Zealand）
• Made the company a wholly-owned subsidiary in March
2022
• Implement measures to stabilize operations, improve
yields, and conserve energy by introducing Oji Group’s
know-how and operational management methods
Dissolving pulp
• Consider production and sales increase of dissolving
pulp with growth potential in light of increasing demand
for apparel
Products are loaded onto a ship (CENIBRA)
Main Overseas Sites (Pulp Production Sites)
CENIBRA Mill
(Minas Gerais, Brazil)
Pan Pac Mill
(North Island, New Zealand)
Expanding Lumber Processing Business
＜Utilization and expansion of company-owned forests in Japan>
The Oji Group owns and manages 188,000 ha of forests in Japan. This is the largest of all forests owned by private
corporate entities in Japan. The Group initially
owned forests for producing raw materials for paper.
However, later, we have been enhancing the multiple values
of forests, including growing raw wood for lumber
production and environmental contribution through forest
management.
• Promote effective utilization of existing company-owned
forests through forest road development and promote
acquisition of new forests
• Promote value added utilization of raw wood in our
company-owned forests through integration with the
lumber production business, including strengthening
synergies with Oji Yoshimoto Ringyo and Oji Yoshimoto
Seizai acquired in August 2021
• Collect and utilize unused trees (branches, leaves, treetops
and other tree parts generated during the felling)
for biomass fuels
• Promote efficiency of planting work by utilizing drones
to transport seedlings
Company-owned forest (Engaru,
Hokkaido
Oji Yoshimoto Seizai’s lumber mill
Topics - Sustainability -
Forestry Activities that Contribute to Achieving the Sustainable Development Goals (SDGs)
The UN Strategic Plan for Forests 2017-2030 indicates that forestry activities contribute to
achieving SDGs goals, and establishes six goals for international society to achieve by the
year 2030. This section introduces the Oji Group’s initiatives towards the second Global Forest
Goal, as an example.
Promote the Employment of Local Residents
The forest plantation business (KTH) in Central Kalimantan, Indonesia, creates approximately
5,000 jobs for its planting, harvesting, converting and shipment services, thereby contributing
to the local economy
Social Contribution Activities
In August 2021, the south of Central Kalimantan was hit by torrential rain, resulting in above
floor flooding in 12 villages in South Arut and North Arut which are located near KTH’s place
of business.
KTH provided relief goods (such as approximately 3 tons of rice, 7 thousand packages of
rehydratable noodles and 200 boxes of water) to these villages through the Regent of Kobar.
(Right picture)
In response to this, Regent Nurhidayah stated, “I do appreciate KTH’s sincerity and involvement
in the local community, and would like to expect similar assistance from other
companies.”
We will continue to assist local residents in cooperation with local governments.
