October 3, 1995

Announcement of capital investment for expansion

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries announced the decision of capital investment for construction of a brand new coated paper machine at the Iwakuni mill on October 3, 1995.
Strategy for expansion
After the merger between Jujo Paper Co., Ltd., and Sanyo Kokusaku Pulp Co., Ltd., on April 1993, we have been endeavoring to develop the rationalization of production capacity and shift of products mix.
Six machines in total capacity of 130,000 were closed down, and the Asahikawa mill shifted the product from newsprint to light coated paper.
Meanwhile, we have realized that the growing demand will require a new capacity, and it has been strategically decided to expand our capacity of coated paper at the Iwakuni mill to meet the additional requirement in the future.
In expanding the above capacity, we have decided to discontinue the operation of No.3 coating machine in the Iwakuni mill, at the sametime, we wanted to review the whole production system in our organization to improve the overall efficiency.
Details of new equipments
Location : Iwakuni mill (Iwakuni city, Yamaguchi prefecture)
Start up schedule : May 1997
Capital investment : 32 billion yen ($320million)
Equipment :
  Paper machine with on machine coater
  Wire width 8000 mm Maximum trim 7040 mm
  Average machine speed 1200 m/m
  Capacity per day 700 tons (240,000 TPY)
Additional construction :
  Finishing equipment - one winding roll and two cutting machines.
  Storage warehouse of finish product - 7000 square meter
  Water effluent treatment equipment
In order to increase the supply of pulp for a new paper machine, the improvement of recovery boiler with the capital investment of 18 billion yen is now under the construction.