TOKYO: Nippon Paper Industries Co. said on Friday that it would cease production of graphic paper and pulp at a plant damaged by a powerful earthquake that struck Kumamoto Prefecture in July.
The company made the decision after concluding that repairing or replacing production equipment at the mill in Yatsushiro would take three to four years and involve significant costs. It will explore new business opportunities at the site.
Nippon Paper expects to book about ¥20 billion in losses related to the earthquake in the financial year ending in March 2027, including ¥15.1 billion in the first half.
Including other disaster-related losses, the company expects to swing to a consolidated net loss of ¥40 billion for the year, compared with a profit of ¥11.7 billion in the previous year.
Nippon Paper will transfer production of newsprint and other items from the Yatsushiro plant to its other mills in Japan and outsource the production of some products to other companies.
In a statement, the company said it would “make every effort to secure continued employment” for employees at the Yatsushiro plant through measures including reassignment within its group. - Japan News/ANN
