Press ReleasesNPI Develops Paper Cup Business and Healthcare Business in Vietnam

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Fumio Manoshiro; hereinafter, "NPI") aims for sustainable growth in the future with its fifth medium-term business plan (from FY2015 to FY2017) by actively injecting management resources into areas that are expected to grow from now on and proceeding with the shift in the business structure. For oversea businesses, NPI puts a lot of energy into business development in the ASEAN region where economic growth is continuing. In December 2015, NPI opened its Vietnam office and launched a paper cup business and healthcare business.

1. Launch of paper cup business

In Vietnam, economic growth is boosting individual consumption and amid the increasing public awareness of the importance of sanitation along with the growth of the food service industry, the market in the area of paper container processing products, especially beverage cups, is expected to continue to expand from now on. In response to this situation, in January 2016, NPI established Nippon Paper Viet Hoa My Joint Stock Company (hereinafter "NPVHM") by joint capital with the owners of Viet Hoa My Trading Production Company Ltd., which has the top domestic share in the paper cup business. After its establishment, NPVHM embarked on building a new plant in the suburbs of Ho Chi Minh City. The construction was completed on January 13 of this year and the plant entered full-scale operations.

■Overview of Nippon Paper Viet Hoa My Joint Stock Company

(1)Location Ho Chi Minh City, Vietnam
(2)Paid-in capital

30 billion Vietnamese dong (about 200 million yen)

(3)Equity ratio 65% for NPI and 35% for local partners

(4)Net sales

About 200 million yen
(5)Area of business Manufacturing and sales of paper cup (beverage cups, etc.)





2. Entry into the growing disposable diaper market
In the ASEAN region, the market for disposable diapers for infants is rapidly expanding along with the increase in income standards. At the same time, the market for disposable diapers for adults is also expected to further expand along with the rapid population aging. In March 2016, NPI acquired Ky Vy Corporation (hereinafter "KyVy"), which manufactures and sells disposable diapers for adults and infants in Vietnam, and made market inroads into the healthcare market in that country. NPI will not only tap the domestic market through KyVy's sales channels by utilizing the technological expertise and know-how that it has developed through its domestic businesses but also actively carry out business with a focus on the entire Asian region.

■Overview of Ky Vy Corporation

(1)Location Ho Chi Minh City, Vietnam
(2)Paid-in capital

104 billion Vietnamese dong (about 500 million yen)

(3)Equity ratio approx. 98% for NPI and 2% for directors of the company

(4)Net sales

About one billion yen
(5)Area of business Manufacturing and sales of disposable diapers for adults and infants, etc.