Nippon Paper Group announced that it will shut 15 paper and paperboard machines in response to the recent sharp decline in demand. The Group has been compelled to operate below capacity to meet demand decreases, however, it has decided to consolidate its production at more efficient machines to raise the operating rates.
In addition, the group will cease all paper machine operation during the regular maintenance period of boilers and pulp machines. This will also help curtail production capacity.
As a result of these actions, the Nippon Paper Group expects to reduce its annual total paper and paperboard production capacity by around 880,000 metric tons. The capacity reductions will be 222000 tons coated paper, 95000 tons fine & mechanical paper, 55000 tons industrial paper, 70000 business communication paper, 133000 linerboard & corrugated medium. Aprt from this additional capacity curtailment by ceasing operation during the regular maintenance period of boilers and pulp machines will be 300000 tons.