Nippon Unipac Holding has decided that Nippon Paper Industries, Co., Ltd., one of its subsidiaries, will suspend the operation of one of its paper machines (the No. 10 paper machine for lightweight coated paper) located at Fuji Mill (Fuji City, Shizuoka Prefecture) in March 2004.
The suspension of the paper machine is designed to eliminate the Group's excess production capacity in coated paper and to bolster productivity. Given that Fuji Mill, which is located in close proximity to the Tokyo metropolitan area, enjoys advantages over other mills in procuring waste paper and shipping products, it will take advantage of the cost savings to increase production efficiency and reduce fixed costs.
The products that have been manufactured by the No. 10 paper machine will continue to be available through the Group, as they will be manufactured by other paper machines at the same mill or by other mills within the Group.
Customers are therefore assured to the same level of supply and of quality that they have come to expect.
Nippon Unipac Holding had suspended six paper machines as of September this year. In line with the Company's announcement in August, it will suspend two paper machines at Shiraoi Mill in March 2004. By bringing forward the suspension of the paper machine at Fuji Mill, Nippon Unipac Holding is aiming to achieve ahead of schedule the goals set out in the First Medium-Term Business Plan for fiscal 2004 through fiscal 2006, which was announced this April.

2. Progress of the Nippon Unipac Holding Group in Streamlining Production Facilities

Note: In the table of New Schedule, the shaded areas represent paper machines whose operations have or will be suspended prior to the scheduled shutdowns.