The Japan Pulp and Paper Group is currently expanding into new fields of business in line with its Mid-term Business Plan 2016. Following investment in our recycled household paper business, our new paper mill in Shizuoka Prefecture started operations during the previous fiscal year, as did the Group’s third large-scale solar power generation plant, this time in Hokkaido. In the United States, meanwhile, we further bolstered our non-Japan wholesaling business by converting group company Gould Paper Corporation into a wholly owned subsidiary. The Group’s third biomass power generation plant is also due to come on line in Iwate Prefecture during the current fiscal year.
Thus, stage one of the Japan Pulp and Paper Group’s expansion into new business fields is largely complete. We now move on to the second stage, which requires us to further enhance efficiency in our key Japan wholesaling business, while focusing on making the most of our four new business mainstays, comprising non-Japan wholesaling, paper manufacturing and processing (centered on household papers), resources and environmental business, and real estate leasing. We will make these five businesses into reliable earnings drivers for the Group, aiming to rapidly achieve our current target of \10 billion in ordinary income, and thereafter to attain our next target, the business metric of 8% in ROE.
We are always surrounded by paper in our daily lives, and I am convinced paper is a material with great potential. Japan Pulp and Paper Company Limited and its group companies will continue to contribute to society through a business focused on our key product, paper, while exploring the infinite possibilities of paper and what lies beyond it.
Kenzo Noguchi President Japan Pulp and Paper Company Limited July 2016