The Oji Group has grown into a global company group with diversified businesses and overseas sales ratio of over 30%, with the management philosophy of “Creation of Innovative Value”, “Contribution to the Future and the World”, and “Harmony with Nature and Society”. In the midst of the recent drastically and rapidly changing business environment, we reaffirm our commitment towards being a manufacturing company that meets the ever-changing needs of the times and supports our future. Oji Group will continue advancing forward, aiming towards the development of a sustainable society.
Creation of Innovative Value
We will strive to offer “innovative value” that fulfill the society’s latent needs by swiftly grasping the change in values across broad fields of the society and promoting the “challenging manufacturing” with novel ideas.
Contribution to the Future and the World
We will continue to be a global company that provides “innovative value” for every country and region and works towards creating a new future.
Harmony with Nature and Society
We will actively address environmental problems and contribute towards the realization of a sustainable society for the sake of continual existence and flourishing with nature and the Earth.
Medium-term Management Plan and Management Strategies
In the “FY2019-2021 Medium-term Management Plan”, the Oji Group carries out the fundamental policies of "Profitability Improvement of Domestic Business”, “Expansion of Overseas Business”, “Promotion of Innovation”, and “Contribution to a Sustainable Society", and aims to be a global corporate group with the stable operating profit of more than \100.0 billion. The numerical targets to be achieved by FY2021 include consolidated operating profit of more than \150.0 billion. We will continue working on various measures to enhance our medium-to long-term corporate value.
■Numerical Management Targets [FY2021 Targets]
Profitability Improvement of Domestic Business
We will further promote selection and concentration in Japan. We positively invest in promising businesses with steady demands, including establishment of a new corrugated container plant in the Kanto region and installation of new biomass boilers. On the other hand, as for businesses with shrinking demand, we promote effective utilization of our management resources by building competitive cost structure through restructuring of manufacturing system and converting use of existing facilities to promising businesses. Specifically, we decided to shut down three machines, primarily for manufacturing printing and communication paper, and convert a machine’s product variety from FY2019 and FY2021. In addition, with business alliance with Mitsubishi Paper Mills Limited, we will reinforce our cooperative relationship in a wider range of business fields to maximize the synergy.
Expansion of Overseas Business
Setting “Expansion of Overseas Business” as one of the fundamental policies of the FY2016-2018 Medium-term Management Plan, overseas business accounted for nearly 70% of the Group’s consolidated operating profit in FY2018. Under the Medium-term Management Plan launched in FY2019, we will continue focusing on increasing the number of overseas operations, and promote organic expansion from existing operations mainly by improving efficiency and production capacity of existing operations and developing new businesses leveraging existing infrastructure. Specifically, we are installing a new containerboard machine in Malaysia, where we are also working on restructuring and capacity enhancement of our disposable diaper business. We are also establishing machines of base paper for household paper in China. We will complement and strengthen our existing business, and give priority to investments that work to create synergies.
Promotion of Innovation
The Oji Group believes that new businesses and products developed through promotion of innovation can contribute to realizing a truly enriched and sustainable society. Particularly, we are committed to developing new applications of forest resources. Cellulose nano-fiber, a next-generation material, has been commercialized for cosmetic applications and is being developed for a wider range of applications including composite materials. Regarding materials to replace plastic, we have developed “SILBIO BARRIER”, a paper material with the same barrier properties as plastic films against oxygen and water vapor, as well as base paper for paper straws. We are also considering entering the pharmaceutical business by utilizing wood-derived hemicellulose.
Contribution to a Sustainable Society
The Oji Group has developed a recycling-oriented business model by carrying out three ways of resource recycling in its business activities; namely “Sustainable Forest Management”, “Water Recycling”, and “Paper Recycling”. In forests, which are supply sources of our wood resources, we promote “Sustainable Forest Management” by repeating the cycle of growing, harvesting and re-planting trees. Then, in the manufacturing processes of pulp and paper, we are developing water treatment technology and driving the recycling of industrial water. The paper products produced are collected and utilized again as recovered paper after use. While contributing to a sustainable society through this business model, the “Oji Forests”, our company-owned forests which extend both in Japan and overseas, absorb and fix more CO2 than we emit, thereby contributing to global warming countermeasures. Furthermore, we strive to contribute to the resolution of global environmental problems such as the reduction of plastic usage through our research and development activities utilizing wood resources mentioned in the “Promotion of Innovation".