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【参・企英・グループ】カテゴリタイトル

About Oji Group

ページタイトル

Industrial Material Business/Household and Consumer Product Business

コンテンツ

小関良樹 プレジデント

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

Yoshiki Koseki
President, Industrial Materials COMPANY
President, Household and Consumer Products COMPANY

Changes in Net Sales and Operating Profit

In FY2019, the Household and Industrial Materials Businesses had net sales of 686.1 billion yen (up 4.9 billion yen from FY2018) and operating profit of 40.9 billion yen (up 18.5 billion yen from FY2018). The Industrial Materials Business reported that profit increased year-onyear due to product price revisions and progress in cost reductions. The Household and Consumer Products Business reported higher net sales as a result of an overall increase in household paper sales.
In FY2020, net sales of 667.0 billion yen (down 19.1 billion yen from FY2019) and operating profit of 37.0 billion yen (down 3.9 billion yen from FY2019) are planned.

Impact of COVID-19

A decrease in net sales is forecast, due mainly to a decrease in demand from customers.

Industrial Materials Business

Business Overview

Industrial Materials Business]

The Industrial Materials Business has production and sales structures that integrate materials 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.

Business Strategies

Profitability Improvement of Domestic Business

The new corrugated container plant in Funabashi City, Chiba Prefecture, has started commercial production in July 2020, to meet the growth in demand for corrugated containers in the Kanto region. The Industrial Materials COMPANY will enhance its competitive strength in the corrugated container business in the Kanto region, by aggressively capturing new demand for corrugated containers, and expanding its supply volume.
At the same time, as part of its initiatives to restructure manufacturing in response to structural changes in domestic demand, we will shut down the manufacturing facilities at the Oji Materia Nayoro Mill and transfer other facilities to Oji Paper Tomakomai Mill, and production facilities for newsprint at the Tomakomai Mill are now in the midst of modification for containerboard and kraft paper.
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.


The new corrugated container plant in Funabashi City, Chiba Prefecture

Expansion of Overseas Businesses

The Industrial Materials COMPANY conducts business at 45 sites in nine countries in Southeast Asia, India, and Oceania. We have been focusing mainly on expanding converting sites to respond to growing packaging demand, and now, we will install new containerboard production facilities in Malaysia, which is scheduled to start commercial operation in 2021. Through these efforts, we will further progress the development of overseas businesses by integrating material and converting.
Regarding new corrugated container plants, we are preparing for operations in Cambodia and India, those are scheduled to start in 2020, and constructions are now in progress in Indonesia (the first entry into this country), Malaysia, and New Zealand. With monitoring risk and return carefully in each region/market, we will expand our business further by way of new plant starting-up from greenfield and/or M&A activities.


New corrugated container plant in Ahmedabad, Gujarat, India

Main Overseas Sites




Promotion of Innovation

In coordination with Oji Holdings’ Innovation Promotion Division, the Industrial Materials COMPANY has launched OJI FLEX PACK’AGE, a next-generation packaging solution for the mail-order sector, where demand for corrugated containers is expected to grow significantly. This solution features a system that can carry out automatic or semi-automatic packaging using special “Rakudan” continuous corrugated sheets, and a height-adjustable automatic sealing system using standard-sized corrugated sheets, whereby not only providing customers with saving of resource and cost but also facilitating sales expansion of the Industrial Materials COMPANY’s products.


“Rakudan” in the corrugated sheets feed of the automatic packaging system

Household and Consumer Products Business

Business Overview

Household and Consumer Products Business

In the household paper and disposable diaper business fields, Oji Nepia integrates sales, marketing, and production in the pursuit of three types of quality: quality of life as in the seeking of good texture, comfort, and functionality; environmental quality as in forest conservation such as the adoption of FSC™certified paper* and social quality such as taking CSR initiatives that contribute to society and that are in line with customers’ hopes.(FSC™C018118)
*FSC™ is the world’s most widely recognized forest certification program. Examinations are performed on issues such as whether forests and lumber are properly managed and whether new trees are planted to replace trees cut in order to protect precious nature. Selecting products with the FSC™ certification mark is a sign of support for forest conservation activities worldwide, and is conducive to sustainable forests in the future.



nepia
Premium Soft Toilet Rolls
nepia
Premium Soft Tissues
nepia
Hana Celeb Three Pack
nepia
Genki! Pants


Business Strategies

Profitability Improvement of Domestic Business

In the household paper business, the market for toilet rolls is expected to grow, and we are launching high value-added products, including longer toilet rolls and printed toilet rolls.
In fall 2020, using base paper produced by the new machine at Jiangsu Oji Paper factory which began operation in July 2020, production and sales of such toilet rolls will commence by employing the newly-installed toilet roll converting equipment in the Oji Materia Edogawa Mill. In addition to enhancing replenishment to the metropolitan area, we will proceed to streamline the supply chain.
To capture market share in the disposable diaper business, we expand sales of nepia Genki! baby diapers. Furthermore, we will engage in product development for adult diapers, aimed at solving issues faced at nursing homes.


Oji Nepia Edogawa Mill (in Oji Materia Edogawa Mill)

Expansion of Overseas Businesses

The Household and Consumer Products COMPANY will promote business expansion in Southeast Asia and China, where consumption of baby diapers is expected to grow, and work to enhance both production and sales.
In Malaysia, we will increase capacity through manufacturing system restructuring and improve efficiency through manufacturing site integration. In Indonesia, which has the largest population in the region, we will respond to growing demand through production at the own factory, which began operation in January 2020, and continue to strengthen manufacturing.
In addition to the export of products made in Malaysia, we will also expand supply of high-quality “made in Japan” products such as Genki! and Whito to other Southeast Asian countries, whereby actively exploring new target countries.
In China, we have launched Doraemon package and actively promote e-commerce to explore new customers, whereby continuing to expand sales through the export of “made in Japan” products.


“Genki! (Doraemon package)” for Chinese market


Main Overseas Sites



Promotion of Innovation

In China, which is witnessing significant growth in high-end (high value-added, high-price range) baby diapers, the new “nepia Whito Premium” lineup will be launched in fall 2020. The new lineup uses thicker non-woven fabric on the inside of diaper, and features enhanced softness and rewet prevention, in line with consumer needs. Moreover, a non-woven fabric, luxurious to the touch, is used for the outside of diaper. In Japan, the package design of Genki! Pants will be changed, aiming to refresh the product image at stores.