We are comprehensively leveraging wood resources 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 FY2022, we had net sales of 423.8 billion yen (up 103.2 billion yen from FY2021) and operating profit of 68.5 billion yen (up 13.3 billion yen from FY2021). In the domestic business, despite the impact of higher raw materials and fuel prices on the pulp business, sales and profits increased due to strong demand and rising market conditions. In the energy business, sales increased due to an increase in the amount of electricity sold as a result of the start of operation of a new biomass power plant in Tokushima Prefecture in December 2022. In FY2023, because sales and profits are expected to decrease due to the global decline in the pulp market, net sales of 375.0 billion yen (down 48.8 billion yen from FY2022) and operating profit of 18.0 billion yen (down 50.5 billion yen from FY2022) are planned.
Business Overview
【Pulp Business】
We produce a diverse lineup of pulp grades including hardwood and softwood kraft pulp, and dissolving pulp. With 2.5 million tons per year market pulp supply capacity, we sell our products 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 into the building materials field and other measures.
【Forest Plantation Business】
We grow and manage company-owned sustainable 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 production forests, 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 Sustainability Action Guidelines for Supply Chains.
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 continue studying for various projects to strengthen our renewable energy business. In December 2022, a biomass power generation facility in Tokushima Prefecture built as part of a joint venture with ITOCHU ENEX CO., LTD. commenced operations. We are also conducting studies for wind power generation projects utilizing company-owned forest lands in Japan. For the procurement of biomass fuels, in Japan, we are increasing the production of fuel woodchips by making use of unused wood resources as well as fully utilizing branches (small branches and leaves), which were previously abandoned. Overseas, we are working to increase procurement of palm kernel shells for use as fuel in Indonesia and Malaysia, while ensuring lawfulness and sustainability.
Enhancement and Expansion of 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
Pulp being loaded onto a ship (Brazil)
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 -
Awarded the Gold Medal in the EcoVadis Sustainability Assessment
CENIBRA received the Gold Medal in a sustainability assessment by EcoVadis, an international assessment organization for supply chains based in France. In the assessment, companies are rated from the four aspects of environment, labor and human rights, ethics, and sustainable procurement. The Gold Medal is awarded to the top 5% of more than 100,000 eligible companies worldwide. The award solidifies the company’s position of excellence under the circumstances of increasingly high environmental and social standards expected of corporations. For CENIBRA's Sustainability Advisor, Sandro Morais Santos, such a remarkable performance in EcoVadis assessment is evidence of the Company's commitment and adherence to the best ESG practices. According to Sandra Maria Henrique, coordinator for Governance and Compliance at CENIBRA, this result proves that sustainability concept and practices have been maturing continuously throughout the Company's growth and evolution.
