Nippon Paper Industries to Shut Down Two Graphic Paper Machines in 2025, Expand Tissue Production

In response to the acceleration of demand decline of graphic paper, Nippon Paper Industries has been working on consolidating production sites and improving productivity.

Aug. 8, 2024 - Nippon Paper Industries Co., Ltd. ("the Company") announced its decision to reduce graphic paper capacity through the shut-down of two paper machines — one at Shiraoi Mill and the other at Yatsushiro Mill. Both mills are located in Japan.

Nippon Paper also said that it has decided to start producing "Household Paper" (tissue paper) at Yatsushiro Mill, beginning in 2027. Household paper includes facial tissue, bath tissue, paper towels, pre-moistened wipes, and personal care products. The Company said the mill's production will primarily target exports.

In a press release, Nippon Paper said, "In response to the acceleration of demand decline of graphic paper, the Company has been working on consolidating production sites, improving productivity, and reducing GHG emissions in an integrated manner, as well as expanding growth areas such as Daily-Life Products Business by leveraging its existing resources."

At Shiraoi Mill, the No.8 paper machine, which has the capacity to produce 64,000 tons per year of fine paper, will be shut down around the end of September 2025. The mill's remaining production will be used to expand products other than graphic paper.

At Yatsushiro Mill, its N2 paper machine, which has the capacity to produce 232,000 tons per year of newsprint, will be shut down around the end of June 2025. At the same time, No. 9 coal-fired boiler will be shut down by the end of November 2025 to reduce GHG emissions, eliminating the entire coal utilization at Yatsushiro Mill.

"The Company will continue manufacturing the products made with these machines at its facilities including the abovementioned mills. The employees involved in the machines that will be shut down basically continue to be employed within their respective mills.

"We will take all possible measures to avoid any inconvenience to our customers and other concerned parties," Nippon Paper said.

Nippon Paper Industries produces a wide range of products, including newsprint, coated and uncoated paper, paperboard, tissue, pulp, lumber, chemicals and more.

SOURCE: Nippon Paper Industries Co., Ltd.