Termination of the Graphic Paper and Pulp Businesses at the Yatsushiro Mill and Future Business Policy
Nippon Paper Industries Co.,Ltd.
Yatsushiro Mill (Yatsushiro, Kumamoto Prefecture), No. 4 paper machine, No. 6 paper machine, N1 paper machine, pulp production facilities and other related facilities. The main products are fine paper, PPC paper and newsprint. The planned household paper business is also covered.
The 2026 Kumamoto earthquake caused extensive and severe damage to the production facilities, buildings and other assets. In addition, consolidating production sites for graphic paper, for which demand is declining, is a key measure in the Company's structural reform efforts.
A loss of ¥15.1 billion, including impairment losses on fixed assets, was recognized in the current interim consolidated accounting period. It was disclosed as part of extraordinary losses under “Losses from the earthquake disaster.” A loss of approximately ¥20 billion for the full year is included in the earnings forecast.
The current interim consolidated accounting period and the full year
A loss of approximately ¥20 billion for the full year is included in the earnings forecast. See the “Notice Regarding Recognition of Extraordinary Losses (Losses from the Earthquake Disaster and Losses from the Disaster) and Revisions to the Earnings Forecast” announced today.
Company response
The No. 4, No. 6 and N1 paper machines, pulp production facilities and other related facilities at the Yatsushiro Mill, which have been shut down since the earthquake, will not be restarted. Construction of the production facilities for the household paper business will also be suspended for the time being.
Production of the products manufactured at the Yatsushiro Mill will be transferred to other mills, while production of some products will be outsourced to other companies or discontinued. The household paper business will be reconsidered, including its construction schedule and business viability, and a policy will be determined by the end of the current fiscal year. The Company will consider new businesses, including the utilization of domestically sourced timber, and collaboration with other companies, while working to secure employment for employees through reassignment and other measures.
A policy for the household paper business is expected to be determined by the end of the current fiscal year. If any matters requiring disclosure arise in the future, they will be announced promptly.
| Item | Details |
|---|---|
| Event name | Termination of the Graphic Paper and Pulp Businesses at the Yatsushiro Mill and Future Business Policy |
| Date of occurrence | 6 November 2026 (the Board of Directors resolved to terminate the businesses) |
| Subject Entity | Nippon Paper Industries Co.,Ltd. |
| Target Locations / Products | Yatsushiro Mill (Yatsushiro, Kumamoto Prefecture), No. 4 paper machine, No. 6 paper machine, N1 paper machine, pulp production facilities and other related facilities. The main products are fine paper, PPC paper and newsprint. The planned household paper business is also covered. |
| Cause | The 2026 Kumamoto earthquake caused extensive and severe damage to the production facilities, buildings and other assets. In addition, consolidating production sites for graphic paper, for which demand is declining, is a key measure in the Company's structural reform efforts. |
| Amount of Impact on Business Performance | A loss of ¥15.1 billion, including impairment losses on fixed assets, was recognized in the current interim consolidated accounting period. It was disclosed as part of extraordinary losses under “Losses from the earthquake disaster.” A loss of approximately ¥20 billion for the full year is included in the earnings forecast. |
| Accounting period in which recognized | The current interim consolidated accounting period and the full year |
| Impact on Earnings Forecast | A loss of approximately ¥20 billion for the full year is included in the earnings forecast. See the “Notice Regarding Recognition of Extraordinary Losses (Losses from the Earthquake Disaster and Losses from the Disaster) and Revisions to the Earnings Forecast” announced today. |
| Suspended operations | The No. 4, No. 6 and N1 paper machines, pulp production facilities and other related facilities at the Yatsushiro Mill, which have been shut down since the earthquake, will not be restarted. Construction of the production facilities for the household paper business will also be suspended for the time being. |
| Outlook | Production of the products manufactured at the Yatsushiro Mill will be transferred to other mills, while production of some products will be outsourced to other companies or discontinued. The household paper business will be reconsidered, including its construction schedule and business viability, and a policy will be determined by the end of the current fiscal year. The Company will consider new businesses, including the utilization of domestically sourced timber, and collaboration with other companies, while working to secure employment for employees through reassignment and other measures. |
| Planned follow-up disclosure | A policy for the household paper business is expected to be determined by the end of the current fiscal year. If any matters requiring disclosure arise in the future, they will be announced promptly. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The 2026 Kumamoto earthquake caused extensive and severe damage to the production facilities and buildings, and fully repairing and replacing the key facilities would require an estimated construction period of approximately 3–4 years and a substantial amount of expenditure. The Company therefore determined that restoring the mill to its original condition would be extremely difficult. Another reason cited was that consolidating production sites for graphic paper, for which demand is declining, is a key measure in its structural reform efforts.