Press ReleasesNippon Paper Industries Co., Ltd. and Shikoku Kakoki Co., Ltd. to Forge a Capital and Business Alliance- Aiming to further strengthen competitiveness in the field of paper food packaging systems -

Nippon Paper Industries Co., Ltd.
Shikoku Kakoki Co., Ltd.

On December 3, 2019, Nippon Paper Industries Co., Ltd. (President: Toru Nozawa, headquarters: Chiyoda-ku, Tokyo; "Nippon Paper*1") and Shikoku Kakoki Co., Ltd. (President: Shigeru Ueda, headquarters: Kitajima-cho, Itano-gun, Tokushima; "Shikoku Kakoki"*2) executed a Capital and Business Alliance Agreement regarding paper food packaging systems.

With the slogan "shaping the future with trees," Nippon Paper focuses efforts in the field of paper packaging with the aim of contributing to better living and cultural progress. Under the banner of "using paper for any purpose for which paper can be used," it proposes various ideas to pursue the possibilities of paper packaging products made from trees, which are a renewable resource.

Shikoku Kakoki is involved in the food-related machinery business, packaging material business, and food product business, and is a contributor to the improvement of food culture by means of various products that exhibit the synergy among these three fields. Shikoku Kakoki-manufactured paper packaging form fill and seal machines for milk cartons and the like (i.e., for chilled products), boast a roughly 70% share of the Japanese domestic market, and are supplied to more than fifty countries worldwide.

The partnership between Nippon Paper and Shikoku Kakoki began with the execution of an Exclusive Agency Agreement in October 1981. With this agreement, Nippon Paper became the sole agent having exclusive sales rights in Japan for Shikoku Kakoki-manufactured paper packaging form fill and seal machines (excluding machines for alcohol beverages and liquid seasonings), and in the 38 years since then, Nippon Paper has engaged in a three-pronged marketing approaching consisting of paper packaging cartons, filling machines and maintenance services, building a track record as one of the Japan's largest manufacturer and seller of liquid packaging cartons. Shikoku Kakoki has supported Nippon Paper's sales with its unique cutting-edge technology as its supplier of paper packaging form fill and seal machines.

In addition to the Exclusive Agency Agreement, Nippon Paper and Shikoku Kakoki further strengthened their relationship by executing a Basic Agreement on Business Alliance in April 2016 and a Basic Agreement on Joint Development of Paper Packaging and Filling Machines in July 2016. As a result, they successfully brought to market some of the world's leading-edge refrigerated filling machines, including versatile flexible filling machines (UP-F Series) that are capable of filling paper containers of multiple shapes, or high-hygiene, high-speed filling machines with closure applicator (UPN-SEC14S). In the aseptic products field as well, they are brushing up the brick-shaped paper packaging carton aseptic filling system NS-FUJI, which enables long-term storage at room temperature, and plan to complete by the end of fiscal 2019 the NSATOM(*3), which enables high-speed aseptic filling of solids, fibers, and highly viscous beverages.

In this environment, Nippon Paper formulated the policy of focusing on the liquid paper packaging carton business as the company's primary business. Nippon Paper considers Shikoku Kakoki an essential partner in bringing this plan to life. Meanwhile, for Shikoku Kakoki, too, its machinery business involving paper packaging form fill and seal machines for the domestic market is a major pillar of its business operations, and it also considers Nippon Paper an essential partner. Nippon Paper and Shikoku Kakoki, united in their desire to maintain an unshakeable relationship into the future, executed a new Capital and Business Alliance Agreement. As a symbol of the two companies' cooperation, Nippon Paper acquired 5.2% of the common shares of Shikoku Kakoki's outstanding stock.

With this Capital and Business Alliance Agreement, Nippon Paper and Shikoku Kakoki will build an even stronger partnership and will further strengthen their competitiveness. They will leverage each other's strengths so their food paper packaging form fill and seal machines systems can evolve, promoting the development and commercialization of "Made-in-Japan" products that improve people's lives.

(*1) Overview of Nippon Paper Industries Co., Ltd.

(*2)Overview of Shikoku Kakoki Co., Ltd.

(*3)NSATOM

Short for Nippon-Shikoku Aseptic Total Optimized and pronounced "N. S. Atom".

A new paper packaging carton aseptic filling system under joint development by Nippon Paper and Shikoku Kakoki.