News Release

Japan Pulp & Paper Co., Ltd. (Head Office: Tokyo, Japan; Representative Director President & CEO: Akihiko Watanabe; hereinafter “the Company”) hereby announces that Japan Pulp & Paper (M) Sdn Bhd (Head Office: Kuala Lumpur, Malaysia; hereinafter “JPPM”), a consolidated subsidiary of the Company, has acquired shares in Mutiara Paper (M) Sdn Bhd (Head Office: Kuala Lumpur, Malaysia; hereinafter “Mutiara”), a paper wholesaler in Kuala Lumpur, through OVOL Malaysia Sdn Bhd (Hereinafter “OVOL Malaysia”), a subsidiary of JPPM.

The Japan Pulp & Paper Group is pursuing a glocal strategy of consolidating paper merchants with varied functions such as inventory, processing, and delivery in various regions of the world. By acquiring Mutiara, which operates as a paper wholesaling business mainly in Kuala Lumpur, we aim to become the leading entity in the paper distribution industry in Malaysia. This will bolster our glocal strategy in Asia by strengthening our operating base and improving our customer service, through economies of scale and the enhancement of management efficiencies at both companies.

Malaysia's GDP is the third largest in Southeast Asia after Indonesia and Thailand, and the country is expected to continue to grow significantly in the future, recording 5.6% growth in the first quarter of 2023. Paper merchants continue to play an important role in the paper distribution market in Malaysia. OVOL Malaysia has six sales offices and warehouses around Malaysia, and through this merger with Mutiara, which has a strong sales base with a high service level in the greater Kuala Lumpur area, we aim to further improve our service delivery and become the leading company in the paper distribution industry in Malaysia.