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February 2, 2016
R金沙js4399o Announces Restructure of Containerboard Production System
R金沙js4399o Co., Ltd. (Head Office: Kita-ku, Osaka; Chairman, President & CEO: Kiyoshi Otsubo) announces that the board has resolved at a meeting on February 2, 2016, to restructure the containerboard production system for the entire R金沙js4399o Group, including the closure of the Yodogawa Mill, in order to advance the transformation of its business structure and accelerate its growth strategy.1. Reason for restructure of conta金沙js4399erboard production system
The R金沙js4399o Group produces containerboard (linerboard and corrugating medium) at six mills in Japan, including five directly-managed mills and one through its consolidated subsidiary Marusan Paper Mfg. Co., Ltd. In order to drive effective utilization of resources and further str金沙js4399then its profitability, R金沙js4399o's Yodogawa Mill (located at Fukushima-ku, Osaka) will be closed and the production locations of containerboard will be consolidated to five mills.
Yodogawa Mill is one of R金沙js4399o Group's paperboard mills for linerboard. With more than 40 years since the paperboard machine was installed, its aging facilities make it difficult to meet future trends, such as lightweight linerboard. After considering the future maintenance and reinvestments required to sustain production at Yodogawa Mill, it was decided that Yodogawa Mill will be closed after two years.
In preparation for the closure of Yodogawa Mill, paperboard machine at R金沙js4399o's Kanazu Mill (located at Awara-shi, Fukui Prefecture), currently used for producing corrugating medium, will be modified to allow it to also produce linerboard. R金沙js4399o Group's production ratios for corrugating medium and linerboard will be reviewed for a restructure of an optimized production system corresponding to the demand.
Containerboard production at Yodogawa Mill will be shifted to other mills, including Kanazu Mill, so as to continue fulfilling R金沙js4399o's supply responsibility.2. Overview of Yodogawa Mill
Name R金沙js4399o Co., Ltd. Yodogawa Mill Location 4-1-186 Obiraki, Fukushima-ku, Osaka
Floor Area 43,906 m2 Ma金沙js4399 Bus金沙js4399ess Manufactur金沙js4399g of conta金沙js4399erboard (l金沙js4399erboard) Number of Employees 58 (as of January 1, 2016) 3. Schedule for Closure of Yodogawa Mill
金沙js4399d of March 2018 (scheduled)4. Future Outlook
(1) Regarding the employees of Yodogawa Mill, which is to be closed, R金沙js4399o will handle this on the premise of maintaining their employment, such as being transferred to other divisions. (2) Regarding the land, buildings, and machinery of Yodogawa Mill, R金沙js4399o will look into other means of utilizing these items, including sale.
(3) Currently, R金沙js4399o Group has spare production capacity for containerboard. It is assessed that the volume of production and sales for containerboard will not fall below current levels even with the closure of Yodogawa Mill. R金沙js4399o will take comprehensive measures to ensure that the implementation of this issue does not impact our customers or other related parties. (4) Impact to consolidated results arising from this issue will take place after FY ending March 31, 2018. R金沙js4399o will promptly announce any significant impact it assesses to arise from this.