Mitsubishi Paper Mills Limited

Business Details

Composed of three categories: Information Paper-related Products (thermal paper, carbonless paper, PPC paper, etc.), Imaging-related Products (inkjet paper, sublimation transfer products, etc.), and Functional Materials-related Products (water treatment membrane substrates, separators for electricity storage devices, tape base paper, filters, etc.). In addition to domestic manufacturing sites (Takasago, Kyoto, and Fuji plants), the segment has a European presence through its German consolidated subsidiary (Mitsubishi HiTec Paper Europe GmbH). The medium-term management plan positions becoming a top runner in functional materials and expanding scale through global expansion as key strategies.

Recent Overview

Decreased revenue and profit due to Germany business restructuring costs and intensifying competition in China; Takasago plant's 'Beyond' project launched

In the Functional Products Business for FY2026 (ending March 2026), net sales were ¥78,449 million (down 11.0% year on year) and operating income was ¥2,370 million (down 29.0% year on year), reflecting decreased revenue and profit. While the Germany business recorded ¥1,719 million in business restructuring expenses as extraordinary losses, monthly profit and loss turned positive in the fourth quarter. Water treatment membrane substrates saw a decline in sales volume due to intensifying competition in the Chinese market. At the Fuji plant, one paper machine and one processing machine were shut down through brand consolidation and facility integration. In May 2026, the next-generation transformation project 'Beyond' at the Takasago plant will begin in earnest, aiming to become a global core plant through aggressive investment of ¥10 billion.

Key Products

Growth Drivers

• Becoming a global core plant and deploying proprietary advanced technology worldwide, centered on the ¥10 billion investment in the Takasago plant's 'Beyond' project
• Expanding sales of thermal paper to the POS market and capturing new demand through environmentally conscious products such as thermal paper for linerless labels and FSC-certified PPC paper
• Expanding demand for separators for electricity storage devices in auxiliary power sources, automotive electrical components, and data centers
• Developing US and European markets for water treatment membrane substrates in industrial applications and seawater desalination plants (actively utilizing overseas sites)
• Capturing overseas demand for total heat exchange elements, mainly for North American condominium applications, and focusing on sales of new products such as sustainability products and ultra-heat-resistant glass fiber nonwoven fabric
• Strengthening exports of sublimation transfer products and industrial inkjet paper to the US among Imaging-related Products, and expanding sales to emerging Asian markets, Europe, and Africa

Risks

• Continued decline in sales volume and value due to the sluggish economy and intensifying price competition in Europe, including Germany
• Price offensives and intensifying competition from competitors in water treatment membrane substrates in the Chinese market
• Temporary decline in demand for separators for electricity storage devices in some applications due to specification changeovers
• Cost increase risk from soaring raw material and fuel prices and exchange rate fluctuations (particularly yen depreciation and euro fluctuations)
• Risk of production suspension due to aging equipment troubles or natural disasters (earthquakes, etc.)
• Risk of additional restructuring costs for the Germany business and risk of delayed profit recovery