 Major events like the global financial crisis following the collapse of Lehman Brothers and Great East Japan Earthquake have sent shockwaves throughout Japan's economy as well as the global economy, while demand for paper and paperboard has also witnessed structural changes due to market maturation and the rapid evolution of information and communications technologies. Given this environment, the Oji Paper Group is "pursuing efficiencies in its domestic business" and "expanding its overseas businesses." To that end, the following six basic measures have been positioned as key components of our management strategy for the future. In implementing these measures, we will actively seek to promote structural changes in our business portfolio as well as focus more on our core competencies.
(1) Acceleration of overseas business expansion
(2) Focus on and expand further into the household and industrial materials business
(3) Enhance and increase product line up in the functional materials business
(4) Respond to the latest advancements in paperless approaches resulting from the downturn in demand for printing and communications paper
(5) Develop integrated business operations for resources, from upstream to downstream
(6) Strengthen trading functions
We have already begun to see results from the implementation of these measures, and we will exert our best efforts in the years ahead to quickly complete this implementation process. As part of our initiative to transform the structure of our business portfolio, we will look to maximize management efficiency by moving to a holding company structure on October 1, 2012 in order to create an organizational structure where each group company can better focus on enhancing its earnings.
In January 2011, we launched production of high quality paper products at the Jiangsu Oji Paper Nantong Mill located in Nantong City in the Jiangsu Province of China. The mill's annual capacity for these products is currently 400,000 tons. We are also moving forward with the construction of bleached hardwood kraft pulp processing facilities that will become operational in 2013. Once fully completed, the Nantong Mill will have integrated paper and pulp production that will provide it with superior cost competitiveness. We intend to leverage the collective strengths of the Oji Paper Group to make this project a success going forward.
We have striven to be a company focused on highly esteemed corporate ethics in fulfilling the management philosophy of "consistently combining good ethics with profitable business practices" expounded by our founder Eiichi Shibusawa. Looking into the future, we are committed to being a corporate group that has earned the trust of society based on its thorough approach to compliance and contributions made to its stakeholders and society as a whole. I look forward to the continued support and patronage of our customers, shareholders and business partners. |
