May 21, 2007

Production of Functional Oligosaccharide Cellobiose Starts in October 2007
- Business application in sight after successful development for feed use -

Nippon Paper Chemicals Co., Ltd.

Nippon Paper Chemicals Co., Ltd. (President: Toshio Inoue) of the Nippon Paper Group has decided to launch a functional oligosaccharide cellobiose business after the effects of the product in feed use were confirmed. New production equipment will be installed in Gotsu Works in Shimane and, with the Company's unique technology, is capable of extracting cellobiose from cellulose in trees. The new equipment will be launched in October 2007.
In the natural world, cellobiose exists in pine needles, cornstalk and other plants and is characterized by its indigestibility. In fact, it reaches the large intestine without being decomposed with digestive enzymes. Cellobiose is decomposed with butyric acid bacteria in the large intestine. Generated butyric acids activate the metabolism of epithelial cells in the large intestine and clean the intestine. The company has studied this function and learned that cellobiose given to weaned baby pigs led to an increase in their feed intake and body weight. In cattle, cellobiose has been shown to significantly facilitate the digestion of dry food and fibers.
Nippon Paper Chemicals will continue to work with Miyarisan Pharmaceutical Co., Ltd.* in developing the use of cellobiose in medical drugs, functional foods and cosmetics.
Information about the new cellobiose production equipment
Production capacity : 80 tons/year
Construction period : Starts in May 2007 with completion scheduled for October 2007
Investment : 240 million yen
*Miyarisan Pharmaceutical Co., Ltd.
Head office : 1-10-3 Kaminakazato, Kita-ku, Tokyo
Representative : Masayuki Uchida
Established : 1947
Capital : 200 million yen
Business line : (1) Production and marketing of drugs for medical and general use, veterinary drugs, feed additives and health food; (2) export of medical drugs
Employees : 162