[Company analysis] Nippon Paper Group, Inc. (日本製紙)

「Nippon Paper Group, Inc. (日本製紙)」is a paper company headquartered in Ochanomizu, Tokyo, and was spun off from「Dai Oji Paper(大王子製紙)」in 1949. Although it is the second largest in Japan and the eighth largest paper company in the world, they are diversifying our business into various fields in addition to the existing paper industry by utilizing their 119 subsidiaries and 39 affiliates. The number of consolidated employees is about 12,943.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Nippon Paper Group, Inc.
Company name (Japanese)	日本製紙
Date of establishment	August 1, 1949
Headquarters location	〒101-0062 東京都千代田区神田駿河台4-6（御茶ノ水ソラシティ）
Capital	104,873
Consolidated sales	1,068,703
Consolidated operating profit	19,615
Consolidated total assets	1,390,814
Consolidated capital	395,343
Capital adequacy ratio	28.4%
Consolidated number of employees	12,943

 

 

 

2. Summary and Features

 
The main products of「Nippon Paper」are four types of paper: newsprint, printing and publishing paper, information paper, and industrial paper. Newspapers in particular account for 37% of Japan's market share. This company have same origin with the 「Oji Paper(王子製紙)」, is one of the two strongest companies in the Japanese paper Industry, so they all came from「Dai Oji Paper(大王子製紙)」.

 

Today,「Nippon Paper」has declared that it is an "integrated biomass company" that includes the existing papermaking field, utilizes renewable wood resources such as the energy chemical business, and makes full use of the "wood" material. In other words, this company create wood resources on our own land and use their own technology to process wood resources into various forms. They are focusing on using this in the energy and biochemical businesses.

Besides,「Nippon Paper」are also accelerating overseas expansion, especially in Asia and Oceania, where demand for paper continues to increase. In recent years, it had purchased the third largest paper company in Australia, and  started a wood resource processing business in Vietnam. Considering the growth in global demand, Nippon Paper actively expanding their business by purchasing the largest paper cup company in India and forming a business alliance with the No. 1 paper company in Thailand.

The energy business is also worth to be noted. Actually, 「Nippon Paper」has been working on the energy business for a long time, but in June 2013, the energy business became fully operational. At present, Their power generation capacity has reached 1.8 million kW, and is nomally used for its own production activities, and the surplus is sold to power companies.

 

 

 

3. Major Business

 

■ Pulp business
Their business is centered on four products: newsprint, printing and publishing paper, information paper, and industrial paper.

■ Paper pack business
「Nippon Paper」handle liquid paper containers and liquid filling machines. In the milk packaging materials division, we have the top share in Japan.

■ Chemical business
This company manufacture and sell various chemical products derived from the material "paper".

■ Energy business
Excluding power plant companies, it has the best power generation capacity in Japan. This is used for sales and in-house.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		992,428	1,046,499	1,068,703
Consolidated operating profit		23,764	17,613	19,615
Consolidated total assets		1,388,885	1,433,036	1,390,814
Consolidated net assets		434,911	443,398	395,343
Breakdown of sales	Paper・Pulp business	820,047	868,487	738,467
	Paper related business	89,229	94,666	201,698
	Building・Civil engineering wood materials	63,530	62,777	59,796
	Energy business			36,227
	Others	1,962	20,567	32,514