April 25, 2003

Shipment of Woodchips Starts from Afforestation Company in Chile

Nippon Paper Industries Co., Ltd.
Sumitomo Corporation

Nippon Paper Industries Co., Ltd. (Nippon Unipac Holding Group; Head office: Chiyoda-ku, Tokyo; President: Takahiko Miyoshi) and Sumitomo Corporation (Head office: Chuo-ku, Tokyo; President and CEO: Motoyuki Oka) have commenced the shipment of woodchips used as raw material for paper-making from plantations which both companies have been planting in Chile. Prior to shipment, an impressive ceremony was held in Coronel, Region Ⅷ in Chile, on April 9, celebrating the start of shipment in the presence of the region's governor and the authorities in the forestry industry.
The both companies' afforestation business in Chile began with the establishment of Volterra S.A. in Chile in November 1991, which was the first overseas afforestation firm for both companies. Volterra S.A. commenced to plant Eucalyptus globulus (blue gum) in 1992 and completed its plantations in Regions Ⅷ and Ⅸ in Chile, in 2001, satisfying the target area of 13,500 hectares. Harvesting has already started in its plantations since last September. The logs were processed into woodchips and shipped with the first ship leaving Coronel port on April 10, 2003. The cargo will arrive at Iwakuni Mill of Nippon Paper Industries on May 12.
Our plantations are continuously renewed by regeneration (coppies)(*), after harvesting. After ten years, the second harvesting takes place. To ensure sustainable forest management in the future, the two companies have a policy to obtain the environmental management system ISO14001 that is defined by the International Organization for Standardization. Subsequent to acquisition of ISO14001 in the afforestation areas in South Africa last July, the companies are making their endeavor to obtain ISO14001 for the plantations in Chile by the end of 2003.
In addition, Nippon Paper Industries, with Tree Farm Initiative under Environmental Charter, is promoting overseas afforestation projects that involves afforestation of more than 100,000 hectares by 2008, to cultivate sustainable hardwood resources for woodchips. Nippon Paper Industries is currently conducting overseas afforestation projects in areas such as Chile, South Africa, and Australia with afforestation of 77,000 hectares completed by the end of last year. Sumitomo Corporation is pursuing afforestation in Ecuador as well as Chile and South Africa, and plans to expand its plantations to 34,000 hectares in total by 2008.
(*)regeneration (coppies) … The method of renewing forest by growing shoots which naturally grow up from stumps after harvesting