Chuetsu Pulp & Paper Co., Ltd.
3877・Prime Market・Pulp & Paper
Business
Chuetsu Pulp & Paper is a comprehensive paper manufacturer founded in 1947, listed on the Tokyo Stock Exchange Prime Market, headquartered in Takaoka City, Toyama Prefecture. The group, comprising 7 consolidated subsidiaries and 6 equity-method affiliates, centers on the Paper & Pulp Manufacturing business (net sales of ¥100,504 million), which mainly manufactures and sells Newsprint, Printing Paper, Packaging Paper, Specialty Paper, Paperboard, Pulp, and other products. It also operates the Electricity Sales Business (¥5,660 million) and peripheral businesses including cellulose nanofiber (CNF)-related products, processed paper products, afforestation, and logistics (¥4,221 million from external customers). Its main customers are paper and pulp trading companies such as Shinsei Paper Pulp Trading, Nippon Paper Pulp Trading, and Kokusai Pulp & Paper, with the top 3 companies accounting for approximately 46% of net sales.
Business Model
The company operates integrated pulp production at its own mills (Takaoka, Sendai, etc.), processing it into a wide variety of paper products for sale domestically and overseas via paper and pulp trading companies. In the Power Generation Business, surplus electricity from its own mills is sold to generate supplementary income. Within the group, peripheral functions such as logistics, cutting/processing, and machinery & equipment maintenance are handled in-house, supplementing the earnings base through intra-group transactions amounting to ¥13,320 million in inter-segment internal sales.
Company Strengths
The company has a vertically integrated production system, producing 732,972 tons of pulp (FY2026 (ending March 2026)) in-house at its Takaoka and Kawanai plants, and manufacturing a wide variety of products including Newsprint, Printing Paper, Packaging Paper, Specialty Paper, Paperboard, and Sanitary Paper (Household Paper). It also has a track record of product-mix conversion through capital investment, such as full operation of a newly installed household paper machine.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 50.3% (an improvement of 3.6 percentage points year on year), with total net assets of ¥59,952 million. Liabilities were reduced by 10.3% year on year to ¥59,134 million, reflecting steady progress in debt repayment. The company has also implemented a Cash Management System (CMS) to improve fund efficiency.
With R&D expenses of ¥315 million (FY2026 (ending March 2026)), the company is advancing a wide range of R&D initiatives through internal and external collaboration, including expanding the use of cellulose nanofiber (Nanoforest) in livestock farming, agriculture, cosmetics, resins, and rubber; developing environmentally conscious products such as non-fluorine oil-resistant paper and low air-permeability kraft paper; and researching hydrogen production technology.
ENVALITH's Perspective
Performance Trend
Consolidated net sales for FY2026 (ending March 2026) came to ¥110,386 million (down 0.6% year on year), a slight decline. As an external factor, the deterioration in overseas market conditions (falling export prices and volumes of pulp, printing paper, and packaging paper to Asia and the Middle East) weighed on results, while domestically, the capture of substitute demand for newsprint, expanded sales of printing paper, full sales of household paper, and stronger environmentally-conscious proposals for packaging paper provided support. Operating profit was ¥2,741 million (down 43.4% year on year), marking a large decline in profit for the second consecutive period, mainly due to an increase in cost of sales (rising raw material and fuel prices and increased fixed costs). Net income attributable to owners of the parent was ¥2,440 million (up 38.6% year on year), but this was mainly due to the disappearance of the large impairment loss (¥2,726 million) recorded in the previous period, which shrank extraordinary losses, rather than an improvement in underlying earning power. For FY2027 (ending March 2027), the company expects net sales of ¥114,000 million (up 3.3%), while forecasting a further decline in operating profit to ¥2,300 million (down 16.1%), indicating that cost pressures are expected to continue.
Growth Strategy
In the first year of the Medium-Term Management Plan 2030, the company aims to achieve consolidated operating profit of ¥8,000 million and ROE of 8% in FY2030 through three pillars: strengthening the paper and pulp business foundation, developing new businesses, and promoting GX.
The company continues full production and full sales of its newly installed household paper machine to capture demand for sanitary paper (household paper). In Packaging Paper, it is strengthening proposals for environmentally friendly packaging materials and capturing demand as a substitute for corrugated cardboard. For paperboard and processed products, it maintains strong export sales of items such as cup noodle containers, while continuing sales expansion measures for domestic Printing Paper.
The Nanoforest Business, which utilizes cellulose nanofiber (CNF), is positioned as a pillar of new business under the Medium-Term Management Plan 2030, with the aim of monetization. It is currently included in the "Other" segment and its profit contribution remains limited, but development continues as a medium- to long-term growth option.
GX promotion is set forth as one of the three pillars of the Medium-Term Management Plan 2030, with efforts focused on reducing fossil fuel consumption, implementing energy-saving measures, and enhancing the environmental value of the Afforestation, Greening & Wood Chip Business. Combined with fuel cost management in the Power Generation Business, the company aims to achieve both cost structure improvement and environmental responsiveness.
Last updated: July 19, 2026