The chimney at Nippon Paper Industries' Yatsushiro Mill collapsed in the Kumamoto Earthquake, leaving no prospect of a resumption of operations. 矢住陸運, which handles paper-chip transportation, has begun transporting goods outside the prefecture, but rising costs have pushed it into the red. Yatsushiro City is launching a crowdfunding campaign to support local businesses, and the impact on the regional economy is growing.
The chimney at Nippon Paper Industries' Yatsushiro Mill in Yatsushiro, Kumamoto Prefecture, collapsed in the Kumamoto Earthquake, and there is no prospect of a resumption of operations. The impact of the mill's shutdown on the regional economy is a concern.
矢住陸運, which has primarily transported wood chips used as a raw material for paper, had operated mainly by delivering chips to the mill. Although it has now established a system for transporting goods outside the prefecture, its costs have increased, and it fell into the red within 2 months.
According to an estimate by Higo Bank, more than 300 companies in the prefecture do business with Nippon Paper Industries, and the economic losses from the production shutdown could reach approximately ¥83 billion. Yatsushiro City has launched a crowdfunding campaign to support the recovery, and the mayor has stressed the need to protect small and medium-sized enterprises' supply chains.
Damage to commercial and industrial sectors is estimated at ¥155.9 billion, while more businesses affected by the earthquake have suspended operations or resumed on a reduced scale.