Notice Regarding Withdrawal from Business Operations of a Consolidated Subsidiary
Japan Pulp & Paper Co., Ltd. (Head Office: Chuo-ku, Tokyo; Representative Director, President & CEO: Akihiko Watanabe; hereinafter “the company”) hereby announces its decision to cease operations and liquidate Safeshred Co., Inc. (“Safeshred”), a consolidated subsidiary of the company, as described below.
1. Overview of the Subsidiary
| Company name | Safeshred Co., Inc. |
|---|---|
| Location | Los Angeles, U.S.A. |
| Business activities | Collection, processing, and sale of recovered paper for recycling |
| Capital | USD 2.06 million |
| Ownership | 100% |
2. Schedule for Liquidation
Safeshred ceased operations in July 2026, and the liquidation process is expected to be completed by December 31, 2027.
3. Reasons for the Withdrawal
In recent years, Safeshred has faced an increasingly challenging business environment. Sales volumes have declined due to changes in recovered paper procurement policies among overseas paper manufacturers, while deteriorating market conditions have continued to put pressure on profitability. At the same time, declining volumes of recovered paper and confidential documents generated in the United States have intensified competition for material procurement.
In light of these changes in the market environment, the group carefully considered the future viability of the business and concluded that Safeshred has fulfilled the role it has played within the group over the 28 years since joining the group in 1998. The company has therefore decided to withdraw from the business.
Going forward, the group will focus its management resources more strategically on business areas with higher growth potential and profitability, with the aim of enhancing the corporate value of the group as a whole.
4. Impact on Consolidated Financial Results
The impact of this matter on the company’s consolidated financial results for the current fiscal year is expected to be immaterial. The company will promptly disclose any matters requiring public announcement should they arise in the future.
