July 9, 1996

Consolidation of Film Packaging Business

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries decided to consolidate several individual business and operating groups related to the film production for packaging within the Company's group to strengthenits activities.
Jujo Central Co., Ltd., wholly owned by Nippon Paper will invest to form a new company to absorb the outstanding several business and operating groups of stretching film of brand name of U-WRAPP by Nippon Paper's Pure-Pack division, wrapping film for household use of brand name ONE WRAP , and stretching film of brand name PROWRAP by Jujo Tokushu Shiki Co., Ltd., subsidiary of Jujo Central Co., Ltd., The new company is scheduled to start up its business from January 1, 1997.
Restructuring of film manufacturing equipment
To strengthen the competitive edge of film product, the Company has decided to restructure the manufacturing facilities of film owned by Nippon Paper and Jujo Tokushu Shiki in Nakoso mill. At the same time, one of the film manufacturing machine will be scrapped and built to increase the production capacity and quality improvement, which will be completed next spring.
Basic motivation of consolidation and strategy for future development
The current plan of consolidation is not only to strengthen the marketing capability by bringing in a new machine, but also re-establish a new structure where R&D activities and operating skills can be improved, and eliminate overlapping of capital investment and self competition with in the group. The Company will endeavor to increase the sales volume of film products through improvement of ONE-WRAP quality and sales organization. In the area of industrial film product, the Company will innovate such new product as wide- width stretch film, and also generate a strong tie with Sun-Mic Chiyoda to jointly develop the film sales business.