Conclusion of a Memorandum of Understanding on Alliance
Nippon Paper Group, Inc.
with Thailand's SCG Paper
Nippon Paper Group, Inc. (President Masatomo Nakamura) is pleased to report that it signed on February 1 a memorandum of understanding with SCG Paper Public Company Limited, Thailand's largest integrated pulp & paper manufacturer, for a comprehensive business alliance in the paper business. To expand operations in the Southeast Asian region, with its excellent economic growth potential and rising importance, Nippon Paper Group will join with SCG Paper in new business establishment, technical cooperation, sales tie-ups and other specific partnerships to bolster the corporate value of both companies.
SCG Paper is a subsidiary of the Siam Cement Group, a leading enterprise in Thailand, and a core firm in the group's paper segment. Based in Thailand, SCG Paper also operates in the Philippines, Vietnam and other countries. It has previously set up a joint venture with Rengo Co., Ltd., a partner firm of Nippon Paper Group, to run corrugated containers plants in Thailand as well as in the region.
Following the signing of another memorandum of understanding with Yuen Foong Yu Paper Mfg Co., Ltd. in November 2007, the alliance with SCG Paper constitutes part of the Nippon Paper Group's initiatives to achieve the Group Vision 2015: namely, to become one of the top five pulp and paper companies worldwide. The Nippon Paper Group will expand this partnership with SCG Paper to expand its operations in the rapidly-growing Asian market.