Press ReleasesNippon Paper Group to Resume Operation of Paper Machine N5 and N6 at Ishinomaki Mill and Bring Forward the Planned Shutdown of Some Production Facilities-Steadily moving forward with reconstruction efforts at Ishinomaki Mill-

Nippon Paper Group, Inc.

Nippon Paper Group, Inc. (President: Yoshio Haga) has moved forward with reconstruction efforts at Ishinomaki Mill (Ishinomaki, Miyagi Prefecture), which sustained damage as a result of the Great East Japan Earthquake. Based on the Plan for Paper Business Revitalization announced on August 3, 2011, the Group is working to restart the commercial operation of paper machine N5 and N6. As a result, a total of four paper machines and one coating machine will be brought back into service at Ishinomaki Mill, following the restarting of paper machine 8 in September 2011 and paper machine N4 and coating machine 4 in November 2011. The resumption means that production capability is expected to recover to 75% or above of almost 850,000 tons/annual, the total capacity of the fully restored Ishinomaki Mill.

With the restarting of paper machine N5 and N6 at Ishinomaki Mill, the Nippon Paper Group has also decided to bring forward the planned shutdown of some production facilities as set forth in the Plan for Paper Business Revitalization as follows, as a measure to cope with the severe conditions in the paper products business in Japan. The Nippon Paper Group will continue to proceed steadily with the restoration work based on the Plan for Paper Business Revitalization, seeking to move forward with the fundamental structural changes of the Group's paper business and enhance its competitiveness.

1. Resumption of production facilities at Ishinomaki Mill

Production capability (1000 t/year)Paper GradesDate of Resumption
Paper machine N5 150 Coated paper February 22
Paper machine N6 272 Coated paper March 9

2. Early shutdown of the planned production facilities

Production capability (1000 t/year)Paper GradesRevised Timing of ShutdownPlanned timing of shutdown
[Nippon Paper Industries]
Iwanuma Mill/ Paper machine 2 & Coating machine 30 108 Coated paper Late February End of March
Fuji Mill/ Paper machine 13 & Coating machine 33 137 Coated paper Late February End of March
[Nippon Daishowa Paperboard]
Yoshinaga Mill/ Paper machine N2 86 Business communication paper Early March End of March