Announcement Concerning Thermal Paper Production Expansion in Brazil

Oji Holdings Corporation has decided to expand the thermal paper production at Oji Papéis Especiais Ltda. (Piracicaba, São Paulo, Brazil) which currently produces thermal and carbonless papers.

1.Objectives of the Production ExpansionOji Group has set a target consolidated operating profit of JPY 150 billion in the Medium-term Management Plan and plans, as one of the measures to achieve it, to expand thermal paper production capacity in South America. Thermal paper consumption in South and Central American is keeping a stable growth as POS and logistics systems, which are major contributors to thermal paper use, are achieving widespread use. Thermal paper consumption is expected to further grow not only in Brazil but in the overall Central and South American regions.Oji Papéis Especiais Ltda. will maintain and increase its share in the thermal paper market in Brazil and South and Central America with advantages in quality and cost competitiveness that will be achieved through this investment of expanding production capacity of the existing paper and coating machines as well as installing a new coating machine.Oji Imaging MediaCo., Ltd., that manages thermal paper business, will continue to enhance its global business.

2.Overview of the Production Expansion

  • Location         Oji Papéis Especiais Ltda. (Piracicaba, São Paulo)
  • Products         Thermal Paper
  • Expansion in production volume       70,000 t/year (approximately) (Total production volume after this investment 150,000t/year)
  • Investment amount                             JPY 13 billion (approximately)
  • Completion of this production expansion    December 2021

3. Impact on Financial ResultsThere will be no impact on Oji Group’s financial results forecasting ending March 2020 due to this investment