Leading papermaker pursues mainland and Asian expansion

After 107 years of growth to become one of the largest paper manufacturers in Japan, Hokuetsu Kishu Paper (HKP) has set its sights on China and Southeast Asia. Allocating 30 per cent of its production for export to Asia, Oceania and the United States, HKP has begun manufacturing overseas with the completion of its Jiangmen Xinghui Paper Mill in Guangdong.

"We are real leaders in paper-making technology," says Sekio Kishimoto, president and CEO. "We are confident that we will succeed in China because of the high-quality standards of our technology."

HKP's mill in Jiangmen produces white paperboard for packaging purposes with a capacity of 300,000 tonnes per year. The mill will begin full-scale operations next month, with 80 per cent of its products to be used by Guangdong's packaging industries. The province consumes more than 3 million tonnes of white paperboard, which is about three times Japan's total production. HKP will also be exporting 20 per cent of the mill's products.

HKP also manufactures large quantities of paper in Japan, enabling it to maintain a steady supply of quality products that contribute to the country's paper media culture, which embraces reading materials such as books and magazines. Cutting-edge technology and operational efficiency, particularly in implementing energy-efficient manufacturing techniques, have allowed the company to increase its output by 42 per cent and double its market share in Japan between 2007 and 2013.

As it continues to grow organically, HKP welcomes potential mergers and acquisitions in the speciality paper and processing sector as part of its global strategy. The company is also open to partnerships with companies to build or operate a speciality paper mill and invest in developing economies across Asia.

"As a global company, we are keen on expanding in Asia," Kishimoto says. "In terms of globalisation, we are the industry leader in Japan."