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July 22, 2013

Rengo Begins Construction Work to Renew Containerboard Machine at Marusan Paper Mfg.

Rengo Co., Ltd. (Head Office: Kita-ku, Osaka; President & CEO: Kiyoshi Otsubo) announces that construction work has begun, as previously planned, to renew a containerboard (linerboard) machine at its consolidated subsidiary Marusan Paper Mfg. Co., Ltd. (Head Office: Minamisoma-shi, Fukushima; President: Hakaru Mita).

As the Rengo Group’s production center for containerboard in the Tohoku region, Marusan Paper Mfg. currently produces approximately 20,000 tons of containerboard per month using two paper machines: PM6 for linerboard and PM7 for corrugating medium. PM6, which was installed in 1973, was damaged during the Great East Japan Earthquake in March 2011, and it has become difficult to respond to recent needs for lightweight containerboard. For that reason, Rengo has decided to renew PM6 to serve the current needs of the market, and to further improve product quality while striving to conserve energy and resources. A groundbreaking ceremony was held on July 19, and operation of the machine is scheduled to start in January 2015.

This renewal is intended to ensure Marusan Paper Mfg.’s continued growth. It is also aimed at enhancing the Rengo Group’s containerboard supply system in the Eastern Japan region and improving mid- and long-term performance by further strengthening the integrated production system from containerboard to corrugated packaging.

Marusan Paper Mfg. was forced to suspend operations for around three months immediately after the Great East Japan Earthquake of March 2011 due to earthquake damage and the accident at the Fukushima Daiichi Nuclear Power Plant. However, operations are currently proceeding as before. Rengo believes that the renewal of the machine will contribute greatly to the region’s reconstruction and revitalization through continuous industrial promotion in the company’s local region of Minamisoma-shi and Fukushima, and by ensuring stable employment. This renewal is eligible for the company relocation support subsidy for industrial recovery in Fukushima.


Overview of Marusan Paper Mfg. Co., Ltd.

Location

1-12-1 Aoba-cho, Haramachi-ku, Minamisoma-shi, Fukushima Prefecture

Representative Hakaru Mita
Capital JPY 300 million
Major shareholder

Rengo Co., Ltd. (95.16%)

Main business Manufacturing, processing, and sales of paperboard (containerboard)
and special paper (functional paper)
Net sales JPY 12.3 billion (For the fiscal year ended March 31, 2013)
Number of employees 208


Overview of renewal

Name

PM8 (PM6 will be closed down after installation of the new paper machine)

Products Containerboard (linerboard)
Maximum production
volume
500 tons/day
Total value of
capital investment

JPY 25 billion

Start of operation Scheduled during FY2014 (operation will start in January 2015)