June 11, 2002
Nippon Unipac Holding Expected to Realize Synergy Effects ReportNippon Unipac Holding
Tokyo, June 11, 2002 - One year and two months has passed since Nippon Unipac Holding was founded in March 2001, a result of the business integration of Nippon Paper Industries Co., Ltd. and Daishowa Paper Manufacturing Co., Ltd.
Nippon Unipac Holding has to date been making earnest efforts, under the Committee for the Rapid Realization of Synergy Effects, centrally composed of both integrated companies, to achieve synergy effects as swiftly as possible. As a result and due to the implementation of diverse plans over a two-year period spanning fiscal years 2001 and 2002, a compiled status report shows that the company is expecting to realize synergy effects of 53 billion yen on an annual base. This means the Company will be able to achieve its initial target of "52 billion yen/year via plans implemented over a three-year term" one full year ahead of schedule.
Meanwhile, with the upcoming merger of the three paper business companies slated for April 2003, a brand new system is to be inaugurated (under the company Nippon Paper Industries), and further cost reduction initiatives will be pursued. Specifically, Nippon Unipac Holding is aiming for effects in excess of 60 billion yen on an annual basis at the end of fiscal year 2003, through the implementation of additional measures, such as restructuring of the production system (yielding effects of 5 billion yen), increased production of DIP, reduction of distribution costs, and cutbacks in personnel.