Rengo Co., Ltd. (Head Office: Kita-ku, Osaka; President & CEO: Kiyoshi Otsubo) announces that it has decided to renew containerboard (linerboard) machine at its consolidated subsidiary Marusan Paper Mfg. Co., Ltd. (Head Office: Minamisoma-shi, Fukushima; President: Osamu Nozaki).

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, and it has become difficult to respond to recent needs for lightweight containerboard. To this end, Rengo has decided to renew PM6 to ensure Marusan Paper Mfg.'s continued growth, to serve the current needs of the market, and to further improve product quality while striving to conserve energy and resources

This renewal will enhance the Rengo Group's containerboard supply system in the Eastern Japan region. It is also aimed at 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.