Press ReleasesNippon Paper Industries Reviews the Production Structure of Coated Paper- Shutdown of the coating machine No.1 at Akita Mill and the coating machine No. 2 at Ishinomaki Mill -

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Fumio Manoshiro; hereinafter "the Company") announces that due to declining domestic demand for coated paper, it will shut down the coating machine No.1 operating at Akita Mill (Akita City, Akita) and the coating machine No.2 operating at Ishinomaki Mill (Ishinomaki City, Miyagi), respectively, at the end of May 2018.

Domestic demand for printing paper is in structural decline with the decrease in the number of children and the increasing availability of electronic media. In particular, coated paper has been recording negative 4% annual growth. Looking ahead, this trend is expected to continue. The Company has therefore decided to shift the production of coated paper, which is manufactured through the two coating machines, to other mills to establish a more efficient production system based on consolidation. This will strengthen the Company's competitiveness of its coated paper business.

Currently, the coating machine No.1 at Akita Mill and the coating machine No. 2 at Ishinomaki Mill manufacture coated woodfree paper.