Industrial Material Business/Household and Consumer Product Business

コンテンツ

We aim to be a “lifestyle and social support enterprise” that contributes to the prosperity of society by providing materials and technologies that are closely tied to people’s dayto- day lives.

Akio Hasebe
President, Industrial Materials COMPANY
Director of the Board,
Executive Officer,
Oji Holdings Corporation

Segment Overview

In FY2021, the Household and Industrial Materials Businesses had net sales of 700.7 billion yen (up 53.2 billion yen from FY2020) and operating profit of 26.1 billion yen (down 12.0 billion yen from FY2020). Domestic business saw increased sales due to continued steady sales of corrugated containers for e-commerce use as well as of kitchen towels, wet wipes and other products for healthcare purposes, in addition to the overall recovery in demand for many products. In the overseas business, despite weak sales of disposable diapers, sales increased owing to robust sales of corrugated containers, coupled with price increases becoming widely accepted. In FY2022, net sales of 810.0 billion yen (up 109.3 billion yen from FY2021) and operating profit of 18.0 billion yen (down 8.1 billion yen from FY2021) are planned.

Industrial Material Business

【Business Overview】
The Industrial Materials Business has production and sales structures that integrate material and converting from base paper manufacturing to product processing and packaging design for the packaging materials that are essential to industry such as corrugated containers, folding cartons, and paper bags and responds in a timely manner to customer needs.

【Corrugated container business】
As well as corrugated containers used in foodstuffs, daily products, electronics, and other areas, we also offer heavy-duty packaging materials used for transporting mainly industrial parts. We also provide automatic packaging systems adjusting the packaging dimension in order to fit each product size inside.

【Folding carton business】
For folding cartons used in a range of fields including confectionaries, cosmetics, and pharmaceuticals, we are combining aesthetically pleasing base paper with structural design tailored to the application and appealing graphics, thereby further enhancing the value of our customers’ products.

【Paper bag business】
We handle a wide range of customer needs—from heavy-duty sacks for packaging used for safe and secure transport of various products, through to paper bags that are used for packaging of retail products and also play a role in sales promotions, and bags for home delivery, which are seeing increased demand given the growth in online shopping.

Expansion & Enhancement of Corrugated Container Business in Greater Tokyo Area, Japan

To further strengthen our business base in the Kanto region where the demand for corrugated containers is expected to markedly increase, we are constructing an integrated plant for manufacturing the base paper and processing it for making corrugated containers in Utsunomiya City, Tochigi Prefecture (scheduled to complete construction in January 2023). We intend to enhance our competitive strength by having an integrated plant. At the same time, as part of its initiatives to restructure the manufacturing system for base paper, we completed the modifications of the Oji Paper Tomakomai Mill newsprint production facilities for the production of containerboard and kraft paper (started operation in October, 2021), followed by the relocation of a special liner and special paperboard machine from Nayoro Mill of Oji Materia to the same mill (started operation in April 2022). To further reinforce earnings bases through the integration of material and converting, a range of investments will be made for the optimization of the domestic business structure.

Integrated plant for corrugated containers in Tochigi Prefecture (under construction)

“OJI FLEX PACK’AGE,” automated packaging system

We sell “OJI FLEX PACK’AGE,” automatic packaging system, which helps packaging adjust flexibly to the product size, and fanfold corrugated sheets “Rakudan,” its packaging material. The introduction of these products helps save packaging labor, reduce packaging materials, and reduce CO2 due to reduction of delivery burden. This initiative received recognition for its eco-friendliness and improvement and rationalization of packaging, winning four awards including the Logistics Grand Prize, “SDGs Social Contribution Award.” Going forward, accelerating market deployment of the automated packaging system and ensuring a stable supply system by increasing our supply bases for “Rakudan,” we will continue new development including collaboration with partner companies so that the system can be a solution that our customers use with more confidence.

“OJI FLEX PACK’AGE,” automated packaging system

Liquid Packaging Carton Business

In September 2020, we established a joint company with ISHIZUKA GLASS Co., Ltd. and entered the liquid packaging carton business. To move away from our former dependence on overseas sources of base paper, Oji Materia started production of milk carton base paper for the first time in Japan in August 2021. This enables an integrated production in Japan from raw material pulp manufacturing to printing and converting, as well as a stable supply of safe and secure Japan-made milk carton. Going forward, we will aim to expand this business outside in Japan where demand is expected.

Further Expansion & Enhancement of Packaging Business in Southeast Asia, India and Oceania

To meet the increasing demand for packaging in various regions, we own a total of 47 manufacturing bases in 9 countries throughout Southeast Asia, India, and Oceania, and we are developing our business in the countries. In Southeast Asia and India, we further enhanced and expanded our business base for containerboard and corrugated containers in an integrated manner by starting operation of a new containerboard machine in Malaysia, starting operation of new corrugated container plants— two in Malaysia and one in Vietnam, and acquiring a corrugated containers company in India, all of which were conducted from 2021 to 2022. In addition, we are constructing a new corrugated container plant in Vietnam to start operation in 2023. In Oceania, in addition to a new plant in Christchurch which was relocated and started operation in 2022, we will explore the possibility of further expanding the corrugated container business. We will also work on the development of plastic alternative products to respond to the expected growing demand. A

4th Plant, Ojitex Haiphong in the north of Vietnam (rendering of completed plant)

Main Overseas Sites

Filter Business

Due to the spread of COVID-19, the demand for ventilators and air purifiers is increasing. In our filter business, we manufacture and sell “Energy recovery ventilators element” which is the core parts of a ventilators and “Coated deodorizing filter” for air purifiers, and continue to steadily expand the business with the start of operation of the second filter factory in China in November 2020. “Deodorizing filter by application” we newly developed in 2021 was adopted for air purifier 2022 model manufactured by Daikin Industries. Deodorizing filter by application has unique “multi-layer” structure where a thin filter is layered while changing directions, which helps dramatically increase the efficiency of contact with air, bringing an advantage that the strong deodorizing continues for a long period of time. The filter works well at places or situations with smells, such as entrance, nursing care facilities, life with pets and bathrooms. We will continue to work on the expansion of the filter business and the development of various filter products which meet customers’ needs.

Topics - Sustainability -

A new plant in Utsunomiya City, Tochigi Prefecture, which is an integrated plant for manufacturing the base paper and processing it for making corrugated containers and will install solar power equipment (scheduled to be completed in March 2023), can reduce GHG emissions associated with delivery of base paper. Therefore, the plant is positioned as a model plant toward the realization of our initiatives for GHG emissions reduction. We are also working to install solar power equipment in existing plants if their weight does not exceed the allowable roof load or when the roof is repaired, and examining the possibility of fuel conversion for coal-fired boilers. We will work on initiatives for environmental issues along with business expansion.

Household and Consumer Products Business

Business Overview

We own the household paper brand “nepia.” “Quality of Life” as in the seeking of good texture, comfort, and functionality. “Environmental Quality” as in forest conservation such as the adoption of FSCTM certified paper. “Social Quality” as in aligning with customers’ hope and contributing to society through actions such as taking CSR initiatives. In the pursuit of these three quality domains, Oji Nepia is producing tissue paper, toilet rolls, disposable diapers, and other products indispensable in our daily lives. (FSCTM C018118)

Enhancement of Branding and Expansion of Sales of Household Paper Products in Japan

In our household paper business, we obtained the first FSCTM certificate in the industry, and aim to develop items such as eco-friendly products that use biomass ink and paper instead of plastic film, and high-quality products exemplified by “Hana Celeb,” resulting in further improvements in value for the “nepia” brand. We are responding to market trends such as by producing extra-long toilet rolls at the Edogawa Mill, which started commercial production in the fall of 2020 and built a new warehouse within the mill in August 2022. By integrating the household paper processing and distribution bases, we intend to enhance our competitive strength in the household paper and disposable diapers market in the Kanto region. For the disposable baby diaper business, we are developing products both in Japan and overseas under the unified brand name“Genki!,” which was renewed in April 2021. By that, we strive to enhance the value of the “nepia” brand and expand sales. In Malaysia, we have increased production capacity by restructuring the production system, including the introduction of a new disposable diaper processing machine. In Indonesia, we are working to secure cost competitiveness and strengthen our business base by manufacturing and selling disposable diapers at a local disposable diaper factory of a joint venture company, thereby further expanding our business, including in neighboring countries. In China, we are also incorporating local consumer needs and expanding sales of thin products. We have also been expanding the exports from Japan, mainly by strengthening Vietnamese sales with the scaling up of local retail business. In the field of disposable diapers for adults, we installed a new processing machine in Fukushima Mill aiming to start commercial production in the fall of 2022 inresponse to the expected growth in the population requiring nursing care and support. We will continue to develop products that address the issues faced by Japan’s aging population in the field of nursing care. Based on the development of products that emphasize environmental friendliness and quality, we aim to further enhance recognition of “nepia,” develop new products and create value, while adapting to customer needs and changing times.

nepia Long Lasting Best Fit Face Mask
Block Filter Plus Surgical

　Since the outbreak of COVID-19, we have continued to produce mask products. Among them, “nepia Long Lasting Best Fit Face Mask” conforms to Class III, the highest class in medical mask standards. We deliver safety and security to our customers by offering the highest class of medical masks as commercial products.

nepia Hana Celeb Pocket Mask

In April 2022, we developed “nepia Hana Celeb Pocket Mask,” adopting the idea proposed by a student in a “Product Development Class” at “TITAN’s College,” a communication college administered by TITAN. Due to COVID-19, wearing masks has become a daily routine. While more and more people were bringing spare masks when they hang out, they faces the pain point that mask packages were ususally too big to fit in a small bag or pouch. This product has innovatively adopted the packaging of pocket tissue paper and eliminated the pain point. President Mitsuyo Ota, who is a big fan of nepia Hana Celeb Tissue, proposed a collaboration with Oji Nepia leveraging the Hana Celeb brand for the first time and it was realized.

Disposable diapers for adults

We are offering “nepia Tender” series for medical and welfare facilities. To realize “co-creating nursing care,” more comfortable nursing care for both the providers and the receivers, we are providing new solutions, products and services through working together with them. In August 2021, we launched “nepia Tender, tape-type, smaller L size,” which delicately responds to changing body forms of users to fit them better. In March 2022, we also launched “Wet towel,” “Buttocks wiper,” “Buttocks cleaning liquid; Tsurunto-san,” and “Nursing care towel; oshibori- no-moto,” now offering a lineup of products designed to reduce the burden of nursing care.

Topics - Sustainability -

nepia krafco mini

In January 2022, we launched a mini size of eco-friendly product “krafco,” which, by packaging tissue papers with paper-derived kraft paper and paper string only. It saves the trouble of separating waste and further contributes to plastic-free (film-free) initiatives and reduction of waste.

nepi-eco series (masks, kitchen towels and tissue papers)

nepi-eco is a series mainly designed to switch packaging materials from petroleum-derived plastic film or ink to biological paper or biomass ink. Including the products manufactured of FSCTM certified paper we have been using, whose specifications help reduce chemical substances in the emissions associated with transportation by increasing each item in volume as much as possible, this series can contribute to the realization of a sustainable society. In the spring of 2022, three new products were added to the series. We have biomass masks in which 80% of the non-woven fabric materials are derived from plants such as sugar cane and corn. There is also a kitchen towel that uses paper materials to replace plastic packaging. In the series, we also have boxed tissue in which the plastic opening is replaced by paper alternatives so waste separation is no longer required. It is also engineered for easy folding to further save trouble when dispose of. Furthermore, in the 2021 survey on brands of companies that, from ordinary citizen’s perspectives, contribute to SDGs*, Oji Nepia ranked 11th. In the ranking by industry, it ranked second in the “Cosmetics and Toiletries Category.” We believe that this result shows Oji Nepia’s initiatives for SDGs and to realize a low-carbon society are well-evaluated by ordinary citizens. ]
* Survey by Sustainable Brands Japan (15,000 samples nationwide, Internet questionnaire, male and female aged 18-79, more than 300 companies)
Oji Nepia continues to work on various initiatives, through production using eco-friendly materials, so that we can contribute to a sustainable society.