Daio Paper ended its longstanding feud with Hokuetsu Corporation and started afresh by making their capital relationship equal. To survive in a shrinking paper industry, the two companies plan to deepen their cooperation as equal partners.
Daio Paper put an end to its 20-year conflict with Hokuetsu Corporation and started the relationship afresh. With Daio Paper's revenue said to be more than twice that of Hokuetsu Corporation, Hokuetsu Corporation reviewed its status as an equity-method affiliate.
Although the companies had been building a strategic business alliance since 2024, they shared the view that making their capital relationship equal was essential, and the review of their structure is described as part of that effort. The two companies' cooperation, aimed at ensuring the survival of the paper industry, is expected to serve as a survival strategy in a shrinking market.
The article does not provide details of internal procedures or specific capital ratios, but suggests that deeper cooperation could contribute to business stability. Attention will focus on the scope of the two companies' collaboration, progress toward management integration and the development of practical business partnerships.
The Nikkei article includes members-only content, so the full text is available in the paid edition. The article focuses on redefining the relationship and the direction of the alliance.