The Forest Resources and Environment Marketing
Business supports the Group’s business through the
stable supply of raw materials and other materials
and comprehensively leverages Group assets
including renewable resources of the likes of forests
and water as well as facilities, real estate, and
technologies to reinforce business.
Fumio Shindo
President, Forest Resources and Environment Marketing COMPANY
President, Printing and Communications Media COMPANY
Changes in Net Sales and Operating Profit
In FY2019, the Forest Resources and Environment Marketing
Business had net sales of 285.6 billion yen (down 40.9
billion yen from FY2018) and operating profit of 28.8 billion
yen (down 35.8 billion yen from FY2018). Net sales and
operating profit decreased substantially, mainly due to the
impact of a weakening pulp market. In the energy business,
electric power sales increased compared to the previous
year, due to the commencing of operation of a new biomass
power generation facility by MPM Oji Eco-Energy.
In FY2020, net sales of 259.0 billion yen (down 26.6
billion yen from FY2019) and operating profit of 22.0 billion
yen (down 6.8 billion yen from FY2019) are planned.
Impact of COVID-19
A decline in sales volumes is forecast, with the weakening
trend in global pulp markets expected to persist, despite
positive effects anticipated from foreign exchange rate
movements at overseas manufacturing sites.
Business Overview
Pulp Business
Market pulp supply capacity is 2.5 million tons per year, and
the Forest Resources and Environment Marketing Business
has a diverse lineup of pulp grades including hardwood kraft
pulp, softwood kraft pulp, and dissolving pulp. The broad
product lineup and the
Group’s sales channels
are used to boost sales
in Asia and other growth
regions. Moving forward,
we will continue to carry
out strategic financial
measures to secure our
competitiveness.
Dissolving pulp
Energy Business
The electric power generation business has strengthened
by expanding and fortifying electricity generation facilities
and entering the electricity retailing business. With regard
to biomass electric power generation, the Energy Business
brought two new boilers online in FY2015 and, in March
2016, established a joint venture biomass power generation
company together with Mitsubishi Paper Mills, which started
operation in 2019.
As for hydroelectric power plants, the energy business continues to update existing facilities.
Additionally, a joint electricity retailing business was launched with ITOCHU ENEX.
Lumber Processing Business
The Forest Resources and
Environment Marketing
Business purchases and
sells lumber products
and processed lumber products, primarily in Asia and Oceania, and is taking measures
to expand production capacity. Efforts to expand sales
at sales bases established in China and Southeast Asia are
ongoing.
Pan Pac lumber
Forest Plantation Business
The Group has engaged in forest management for many years
and has 190,000 hectares forests in Japan and 250,000 hectares
of forest plantations overseas. In addition to paper manufacturing
raw materials, forests are used for processed
products including lumber and plywood, as well as diverse
resources including biomass fuel, to develop a integrated forestry
industry that generates maximum value from forest resources.
Fuels/Chemicals and Other Material Procurement Business
As prices for raw materials, fuels, and materials increase in
conjunction with economic development of emerging countries,
centralized management procurement and advantageous
procurement are conducted for the group as a whole.
CSR procurement is conducted while taking into consideration
the environment and society in accordance with the Oji
Group Partnership Procurement Policy.
Starch and Sweetener Products Business
The Forest Resources and Environment
Marketing Business is
working to enhance manufacturing
technology for starch and
sweetener products, etc., primarily
corn, while developing and
providing products to meet customer
needs.
Business Strategies
Profitability Improvement of Domestic Business
Electric Power Generation Business: Expansion of the renewable energy business with a focus on establishing new biomass power plants
The Forest Resources and Environment Marketing Business is pursuing further expansion of the energy business, and a joint venture biomass power generation facility established with Mitsubishi Paper Mills commenced operation. Additionally, a decision was made to construct a biomass power generation facility in Tokushima Prefecture as a joint venture with ITOCHU ENEX, and preparations are underway for the start of operations in 2022.
To reinforce the biomass fuel business in conjunction with expansion of the energy business, a new fuel woodchip production company was established in Hokkaido in November 2018 to expand production of fuel woodchips by making use of unused domestic forest resources. Overseas, efforts to increase procurement of palm kernel shells (PKS) for use as fuel continue in Indonesia and Malaysia.
Expansion of Overseas Businesses
In the pulp business, the Forest Resources and Environment Marketing
Business continues to implement strategic profit measures at key business
sites to reinforce business foundations that are resilient to fluctuations
in pulp markets.
Oji Group know-how and operational management methods have
been introduced and used in New Zealand to stabilize operations and
raise efficiency. In Brazil, profit measures are implemented on a continuous
basis by updating production facilities and through other means.
In Japan, the Forest Resources and Environment Marketing Business
is expanding business and started production of high value added products:
medical product materials and filter materials in addition to existing
products for rayon applications.
The Forest Resources and Environment Marketing Business conducts
forest plantation operations in nine locations in six overseas countries
and is working to continuously secure sustainable resources.
Products are loaded onto a ship (Brazil)
Main Overseas Sites (Pulp Production Sites)
CENIBRA Mill
(Belo Oriente, Minas Gerais, Brazil)
Pan Pac Mill
(North Island, New Zealand)
Promotion of Innovation
The growth of planted trees is affected by a variety of factors, including natural factors such as the rainfall and soil in each
area, and human factors such as the selection of species, care of the seedlings, and plantation management.
The trees planted by the Oji Group’s Forest Plantation Business in plantations around the world take from a few years to more than 20 years to mature. The Forest Plantation Business is striving to research environmentally, economically and socially friendly resources in each area, in collaboration with local forestry researchers and forestry industry organizations.