Tokyo, July 8, 2002 -Nippon Unipac Holding Group announced it has formulated a comprehensive promotion scheme to advance a diverse range of preparatory activities related to the upcoming business mergers that will lead to the creation of "Nippon Paper Industries Co., Ltd." and the creation of "Nippon Daishowa Paperboard Co., Ltd.," slated to occur on April 1, 2003(*). The scheme was initiated in July 2002.

 

Under the initiatives directed by Nippon Unipac Holding Group, a "The Paper Division Committee" was inaugurated for the business related to Nippon Paper Industries, while a " The Paperboard Division Committee" was established for the business related to Nippon Daishowa Paperboard. In promoting the operation of these committees, overall consolidation and progress management will be implemented for each, which will allow the integration and merger to proceed in a seamless fashion. Meanwhile, a "Executive Committee for the Group Reorganization " was also set up to coordinate the activities of these two committees.

 

The formation of the two new committees largely affected the organization structure of previously established committees. The Synergy Effects Promoting Committee had been formed in conjunction with the business integration of Nippon Paper Industries and Daishowa Paper Manufacturing Co., Ltd., and it had consisted of seven subcommittees (Joint Sales Company, Material Cost, Other Variable Cost, Distribution Cost, Rationalization of Production Facilities, Labor Cost, and Financing Cost). The newly formed Human Resources Subcommittee absorbed Labor Cost Subcommittee, while Financing Cost Subcommittee was absorbed by Accounting and Financial Subcommittee. The five subcommittees aim to allow the Group to realize a maximum level of integration and merger effects in excess of \60 billion on an annual basis at the end of fiscal year 2004.

 

(*)For detailed information regarding these mergers, please refer to the press release dated April 23, 2002.