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November 30, 2010

Rengo to Take Containerboard Downtime

Rengo Co., Ltd. (Head Office: Kita-ku, Osaka; President & CEO: Kiyoshi Otsubo) announces that the company is to take more downtime related to containerboard production, reflecting a decline in demand due to a stagnating economy from the second half of the fiscal year.

Rengo has constructed a flexible production system to accurately respond to changes in demand, and in recent months containerboard mills have curtailed production by approximately 10-15% of total capacity. However, given that demand for containerboard looks set to slow down from the end of this year going forward, the decision has been made to take approximately 80,000 tons (25% of total containerboard production capacity) of downtime for December and January to maintain containerboard inventory at appropriate levels.