Rengo Co., Ltd. (Head Office: Kita-ku, Osaka; President & CEO: Kiyoshi Otsubo) announces that its consolidated subsidiary, Yamato Shiki Co., Ltd. (Head Office: Ibaraki-shi, Osaka Prefecture; President: Toshihiro Hijikata) has commenced construction of its Setouchi Plant (Setouchi-shi, Okayama Prefecture).

Last August, Yamato Shiki's Okayama Plant (Minami-ku, Okayama-shi) suffered the loss of a corrugator (corrugated board manufacturing machine) due to fire. With the pending issue of the plant's integration with the Himeji Plant (Taishi-cho, Ibo-gun, Hyogo Prefecture) also in view, the company had been considering the construction of a new plant.

At the end of April this year, the company concluded a location agreement with the city of Setouchi, and the ground-breaking ceremony for the Setouchi Plant was held on July 3, 2013. Scheduled to commence operation in May 2014, the plant is designed to be environmentally friendly, utilizing photovoltaic power generation, and deploying LED lighting and other features. The establishment of the new plant will enhance the swift response to customer needs, deliver further improvements in product quality, and augment the Rengo Group's corrugated packaging business.