Printing and Communications Media Business

In FY2021, we had net sales of 244.5 billion yen (up 0.5 billion yen from FY2020) and operating profit of 17.8 billion yen (up 6.6 billion yen from FY2020). While demand for communications paper declined due to the growth of teleworking and the trend of digitization of office documents in addition to continued decline in demand for newsprint and printing paper for publication use, sales volume of printing paper for commercial printing use recovered due in part to the rebound from the stagnation of economic activity. In addition, since the effect of higher raw materials and fuel prices was offset in part by thorough cost savings at each production process, sales and profits increased. In FY2022, net sales of 257.0 billion yen (up 12.5 billion yen from FY2021) and operating loss of 2.0 billion yen (down 19.8 billion yen from FY2021) are planned.

We are working to improve profitability and competitiveness, including building optimized production systems for the entire group through collaboration with other group segments by determining future demand trends, and maximizing effective use of pulp manufacturing facilities, biomass boilers, and other assets. In October 2021, we converted a newsprint machine to a machine for manufacturing containerboard at Tomakomai Mill. In April 2022, we also started operation of a special liner and special paperboard machine relocated from Nayoro Mill of Oji Materia at the same mill. Other than this, we are producing high-quality dissolving pulp by introducing most advanced continuous industry processes for existing kraft pulp manufacturing facilities at Yonago Mill. Overseas, utilizing existing pulp manufacturing facilities and biomass boilers, etc., we built a new household base paper machine at Jiangsu Oji Paper (China) (started operation in 2020).

In these days, in connection with GX (green transformation) strategy on which importance is placed in business activities, products and services which contribute to the reduction of environmental burden are required to realize a decarbonized and sustainable society. Oji Paper meets our customers’ green procurement policy requirements, including by developing light weight printing paper which helps reduce greenhouse gases from production and transport of publications and expanding a lineup of FSC certified PPC paper products based on the principle of sustainable forest management. Working together with a publishers, we have also developed common-use pocketbook paper by integrating the qualities of paper products, each of which was used exclusively for each of the publisher’s labels. This contributes to the GX strategy in terms of increased logistics efficiency. In the meanwhile, we are working on the review of our range of products and consolidation of paper products for offset printing in order to enhance efficiency and energy conservation in the manufacturing process. We also renewed paper products compatible with high-speed ink jet printers for business forms, with respect to which multi-product, small-lot printing will expectedly produce the effect of shorter delivery periods and stock reduction, and these renewed products are well received. As explained above, we capture market needs accurately and work on the product development which contributes to the reduction of environmental burden.