Nippon Paper Industries to Spin Off Functional Materials BusinessNippon Unipac Holding Group
Nippon Paper Industries Co., Ltd.
Nippon Paper Chemicals Co., Ltd.
Nippon Paper Industries Co., Ltd. (President: Takahiko Miyoshi), Japan's leading paper and pulp manufacturing company and a core member of the Nippon Unipac Holding Group, has resolved to spin off its functional material business on October 1, 2004 and integrate it into Nippon Paper Chemicals Co., Ltd.
The liquid crystal display material business (optical films for liquid crystal displays), which has been central to Nippon Paper Industries' functional materials business, is expected to enjoy further growth in the future, accompanying the development of the digital home electronics industry, one of today's cutting-edge sectors. With this spin off, the Company will strive to improve its management efficiency and to streamline operations so that management is better able to swiftly and efficiently adapt to the rapidly changing business environment and bolster profitability.
The company that will incorporate the functional materials business, Nippon Paper Chemicals is a wholly-owned subsidiary of Nippon Paper Industries. Established in October 2002 when three of Nippon Paper Industries' diversified business sector were spun off, Nippon Paper Chemicals is primarily engaged in the dissolving pulp (DP) and chemical product businesses. Following this organizational change, Nippon Paper Industries will specialize in the paper business, the core business of the Group. The Nippon Unipac Holding Group is committed to appropriately allocating its management resources on a Group-wide scale to enhance management efficiency.