ENVALITH
三菱製紙株式会社 logo

Mitsubishi Paper Mills Limited

3864・Prime Market・Pulp & Paper

Official website
三菱製紙株式会社 logo
Mitsubishi Paper Mills Limited3864

Business

Mitsubishi Paper Mills, founded in 1898, is a comprehensive paper manufacturing group and an equity-method affiliate of Oji Holdings. Its business consists of two pillars: the "Functional Products Business" and the "Paper Materials Business." In the Functional Products Business, in addition to information specialty papers such as thermal paper and inkjet paper, the company manufactures and sells functional materials including water treatment membrane substrates, separators for energy storage devices, and total heat exchange elements, with operations both domestically and overseas. In the Paper Materials Business, printing paper, packaging paper, and market pulp are produced at the Hachinohe and Kitakami plants. The company has 11 consolidated subsidiaries and 8 affiliated companies, with overseas bases in Germany, the United States, and China. Consolidated net sales for FY2026 (ending March 2026) were ¥157,455 million.

Business Model

Based on integrated manufacturing at the company's own plants (Takasago, Kyoto, Fuji, Hachinohe, Kitakami), the company supplies products to domestic and overseas customers through sales subsidiaries such as Mitsubishi Oji Paper Sales and overseas bases (Germany, the United States, China). In the Functional Products Business, the company secures earnings through technological differentiation of high-value-added products and overseas expansion, while in the Paper Materials Business it pursues earnings improvement through production consolidation and cost reduction. R&D expenses amounted to ¥801 million (FY2026 (ending March 2026)), and the company holds 761 industrial property rights.

Company Strengths

The Company possesses proprietary wet-laid nonwoven fabric technology and coating technology in functional materials such as water treatment membrane substrates, energy storage device separators, total heat exchange elements, and ultra heat-resistant glass fiber nonwoven fabrics. As of the end of FY2026 (ending March 2026), the Company held 761 industrial property rights and continued to invest ¥801 million in R&D expenses. Development departments are located at the Takasago, Kyoto, and Fuji plants, establishing an integrated operating system combining manufacturing and R&D.

In March 2019, the Company completed a third-party allotment of new shares to Oji Holdings Corporation, becoming an equity-method affiliate of Oji Holdings. Since the information paper business alliance in 2007, the Company has accumulated collaborative achievements such as joint biomass power generation (MPM & Oji Eco-Energy Corporation) and a household paper joint venture (MPM & Oji Home Products Co., Ltd.), possessing a foundation for synergies in sales, procurement, and production.

The Company has overseas bases including Mitsubishi HiTec Paper Europe GmbH (Germany), Mitsubishi Imaging (MPM), Inc. (United States), and Zhuhai Qingling Purification Technology Co., Ltd. (China). It has a track record of export sales including sublimation transfer products for the U.S. market, information paper for the European market, and rewritable media for the Chinese market, and functions as an overseas sales expansion channel for functional materials products such as water treatment membrane substrates and tape base paper.

ENVALITH's Perspective

Operating profit for the Functional Products Business in FY2026 (ending March 2026) was ¥2,370 million (down 29.0% year on year), continuing a trend of declining profits. To achieve the operating profit target of ¥20,000 million (¥25.0 billion) in the final year of the mid-term management plan (FY2028, ending March 2028), it is essential that the Takasago "Beyond" project (a ¥10.0 billion investment) begins to show results and that sales expansion of water treatment membrane substrates and separators for energy storage devices accelerates; progress on these fronts will be the focal point of evaluation.

The Paper Materials Business recorded an operating loss of ¥2,113 million in FY2026 (ending March 2026). Equipment trouble at the Hachinohe Mill caused by the earthquake off the coast of Aomori Prefecture, combined with an increase in the number of large-scale periodic maintenance shutdowns, resulted in temporary losses on top of the structural decline in domestic demand for printing paper. Until the effects of "Reborn60 Hachinohe" (a planned investment of ¥25.0 billion through fiscal year 2030) materialize, the risk of continued losses in this business is a point investors should closely monitor.

The equity ratio as of the end of FY2026 (ending March 2026) was 46.3% (up 5.4 percentage points year on year). The company announced a policy to reduce cross-shareholdings to 20% or less of net assets during the mid-term management plan period, and recorded proceeds from sales of investment securities of ¥54,310 million in FY2026 (ending March 2026). While efforts to improve capital efficiency toward the ROE target of 10% and ROIC target of 9% (FY2028, ending March 2028) are commendable, the gap with the current level remains large, and the feasibility of achieving these targets warrants verification.

Growth Strategy

Aiming for net sales of ¥250,000 million and operating profit of ¥20,000 million in FY2028 (ending March 2028) through the dual pillars of higher value-added and global expansion of Functional Products and structural reform of Paper Materials

Investing ¥10 billion in Takasago Plant to implement "growth strategy," "production efficiency improvement," and "organizational foundation strengthening." Aiming to evolve into a global core plant that disseminates unique advanced technologies to the world. Accelerating expansion of sales of functional materials such as water treatment membrane substrates, separators for energy storage devices, and total heat exchange elements.

Investing ¥25 billion by FY2030 (ending March 2030) to renew Hachinohe Plant into a next-generation sustainable plant that achieves "production innovation," "decarbonization," and "well-being." Concurrently promoting the consolidation of production onto the high-efficiency machine following the shutdown of the N1 paper machine at Kitakami Plant, and the integrated operation of both Hachinohe and Kitakami plants.

Focusing on expanding sales of water treatment membrane substrates (industrial applications and the European/American market for seawater desalination plants), separators for energy storage devices (for auxiliary power sources, in-vehicle electrical equipment, and data centers), and total heat exchange elements (for North American condominium applications). Actively utilizing overseas bases in the U.S., Germany, and China to promote overseas expansion of domestically manufactured products.

Against the backdrop of growing awareness toward a sustainable society, promoting expanded sales of environmentally-conscious packaging materials such as Bleached Kraft Paper, single-sided kraft coated paper, and barrier coat products. Building up a track record of adoption by major confectionery, pet food, and seasoning manufacturers, and advancing development of emerging Asian markets with significant growth potential.

Renovating the former Kyoto R&D Center to establish it as an innovation base consolidating R&D, production, and planning/administration functions. Under a two-center structure comprising the Core Technology Center and the Advanced Technology Center, promoting deeper technology development and entry into new fields for both the Functional Products Business and the Paper Materials Business.

Last updated: July 19, 2026