We are enhancing our business by making comprehensive
use of forest resources, including pulp, forest plantations,
lumber processing, and renewable energy.
Yuji Onuki
President, Forest Resources and
Environment Marketing COMPANY
Executive Officer
Oji Holdings Corporation
Segment Overview
● Japan: Against an increase in net sales owing to the steady performance of dissolving pulp and the start of operations at a biomass power plant in Tokushima from December 2022,results were essentially unchanged from the previous year owing to weak demand for construction and packaging in the lumber business.
● Overseas: Net sales in the pulp and lumber businesses decreased due to the deterioration in pulp market conditions and restoration work under way at manufacturing facilities at Pan Pac Forest Products Ltd. in New Zealand following cyclone damage in February 2023.
Business Overview
Starting with the forest plantation business, which aims to nurture healthy forests as well as produce sustainable forest resources, we are
developing comprehensive businesses that utilize those resources, which include pulp manufacturing, lumber processing, and biomass
power generation. We meet the needs of our customers with our domestic and international procurement, production, and sales networks
and a diverse product lineup.
【Pulp Business】
We produce a diverse lineup of pulp grades, including hardwood and softwood kraft pulp, and dissolving pulp. With an annual production capacity of market pulp of 2.5 million tons, we sell our products globally, including in Asia, Europe, and North America.
【Energy Business】
We are promoting the electric power generation business by using renewable energy , including wood biomass, hydroelectric power, and solar power.
Leveraging our sites in Japan and overseas, we are also working to strengthen the purchasing and market supply of biomass fuels.
【Lumber Processing Business】
We are expanding production capacity and strengthening the purchasing and selling of wood products, primarily in Asia and Oceania. In Japan, we are moving into the lumber production business and seeking to strengthen profitability through sales expansion into the building materials field.
【Forest Plantation Business】
In company-owned forests in Japan and overseas, we grow and manage sustainable forests.
Harvested woods are supplied for pulp raw materials, as well as for a range of applications such as lumber, plywood materials, and biomass fuels.
【Fuels/Chemicals and Other Material Procurement Business】
Centrally managing purchasing for the Oji Group as a whole, this business gives consideration to environmental and social aspects while promoting advantageous and stable procurement.
【Starch and Saccharification Business】
We have been developing technologies for starch and saccharification products, primarily of corn, to provide products that meet the needs of our customers.
KTH forest plantation (Indonesia)
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Oji Green Energy Tokushima
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Challenges in Achieving the Medium-term Management Plan and Priority Measures for FY2024＜Business expansion by leveraging fuel procurement
advantages＞
Enhancement and Expansion of Pulp Business
To reinforce business foundations that are resilient to fluctuations in pulp markets, we are continuing to implement strategic profit measures at key business sites while working to strengthen sales.
CENIBRA (Brazil)
・ Further enhancement of cost competitiveness through installation of most advanced/labor-saving manufacturing facilities
・ Consideration of increases in production capacities
・ Building of global direct sales system, promotion of customer service improvements
Dissolving pulp
・ Increasing production and sales of dissolving pulp in light of increasing demand for apparel
・ Promotion of development/sales of high-value-added products
Pan Pac (New Zealand)
・ Investment in recovery from cyclone damage, response to disaster risks
・ Early recovery of sales volumes as production resumes
Oji Fibre Solutions（New Zealand）
・ Implementation of measures to stabilize operations, improve yields, and conserve energy by introduction of the Oji Group’s operational techniques and management methods
CENIBRA Mill
Expanding Lumber Processing Busnses
Initiatives to Enhance Corporate Value
Addressing Improvements in Forestry Operations through Mechanization
Whereas forestry operations are still largely done by hand, the Oji Group is working to mechanize operations in its forests both in Japan and overseas to reduce costs, improve safety, and alleviate labor shortages. One recent initiative by CENIBRA of Brazil has been the successful development, in collaboration with a heavy
machinery manufacturer, of an automatic planting machine that performs six tasks, such as planting and fertilizing, that had previously been done by hand. This machine was custom-made for CENIBRA’s operations, making it a cutting-edge initiative on a global scale. The operators who would perform tasks with the new machine were recruited from among the Company’s employees, including those who had previously performed the tasks manually, which also contributed to improving employee engagement.
Automatic planting machine during plowing-in operations
Pan Pac (New Zealand)’s Recovery Project－PHOENIX Project－
On February 14, 2023, Pan Pac’s entire factory sustained damaged from cyclone Gabrielle, causing operations to halt for more than a year. Under the PHOENIX Project, which aimed to restore operations, all Pan Pac employees, as well as the head office management and related departments, came together to work toward restoration so that products could be delivered to customers as quickly as possible.
They aimed to use repaired and updated equipment to improve productivity beyond what it had been before the disaster. Also, by working in cooperation with the local government on a project to reinforce and extend levees, taking measures to prevent flooding on the factory premises, and building a multistory main office, they strove to improve the site’s resilience against disaster risks.
1)Pan Pac Mill the day after the cyclone hit
2)Pulp mill facilities immediately after the start of post-recovery operations
3)Managing Director Tony Clifford (right) and Deputy Managing Director Josh Hanayama (left) in front of the plaque commemorating reconstruction