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Nippon to Shutdown Iwakuni Mill in Japan

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Nippon Paper Group, Japan, reports that it will shutdown production facilities at its Iwakuni Mill (Japan) of Nippon Paper Crecia Co., Ltd., "to cope with severe conditions in the household paper products business." These facilities account for about 15% of Nippon Paper Crecia's entire production capacity. Transferring products produced at the Iwakuni Mill to Kyoto and other mills in Japan will raise the operation ratio of production facilities to 90% or above.

By shutting down production at Iwanuni, Nippon Paper Crecia says it intends to reduce fixed costs and enhance production efficiency, thereby strengthening the competence of its household paper products business. After shutting down the production facilities, the Iwakuni Mill will be converted to a logistics center, aimed at strengthening functions and covering the Chugoku, Shikoku, and Kyushu regions.


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