February 9, 1998

Plantation Project In China

Nippon Paper Industries Co., Ltd.
ITOCHU Corporation.

Nippon Paper Industries Co., Ltd and ITOCHU Corporation have agreed with United Point Investment (UPI - a subsidiary of Thailand investment group in Hong Kong mainly promoting international trade of machinery, food stuff and seaport equipment) to form a forest company to develop the plantation in China.
This is the first project of plantation in China by a Japanese firm, and the sixth plantation project by Nippon Paper Industries following the similar project in Chile, Australia and South Africa.
Profile of forest company;
Company name Crown Million Yangjiang Forestry Ltd.
Location Yangjiang City, China
Establishment January 24, 1998
Initial investment Approximately U.S.$2 million
One third each by Nippon Paper, ITOCHU, and UPI
Forest land Within 90 kilometer from Yangjiang port.
Plantation of eucalyptus tree at the harvested area of planted pine trees
Schedule Plantation starts in 1998 and harvest in 2003
Size of plantation Initially 2000 ha and target 10,000 ha
The plantation of eucalyptus by UPI is in place at 6,700 ha about 100 kilometer North of Yangjiang port, and Nippon Paper and ITOCHU started already to import woodchip of eucalyptus from the said area.
Both companies are aiming to secure chip supply from these self-developed resource.