Chuetsu Pulp & Paper Co., Ltd.
3877・Prime Market・Pulp & Paper
Paper & Pulp Manufacturing
The core segment of Chuetsu Pulp & Paper. Responsible for the manufacturing and sale of paper and pulp products.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Net Sales | ¥100,504 million | ¥101,407 million | ↓ |
| Segment Operating Income | ¥1,692 million | ¥3,663 million | ↓ |
| Segment Operating Margin | 1.7% | 3.6% | ↓ |
Business Details
Manufactures and sells Newsprint, Printing Paper, Packaging Paper, Specialty Paper, Paperboard & Processed Products, and Pulp. This is the Group's core business, accounting for approximately 91% of consolidated net sales. The three major sales channels are Shinsei Paper & Pulp Co., Ltd., Kokusai Pulp & Paper Co., Ltd., and Nippon Paper & Pulp Co., Ltd. In response to the structural decline in domestic demand, the company is addressing this through full production and full sales of its household paper machine and by strengthening proposals for environmentally conscious packaging materials.
Recent Overview
Deteriorating overseas market conditions and rising raw material and fuel costs weighed heavily, resulting in a significant 53.8% year-on-year decline in operating income.
In FY2026 (ending March 2026), the Paper & Pulp Manufacturing segment recorded net sales of ¥100,504 million (down 0.9% year on year) and operating income of ¥1,692 million (down 53.8% year on year), a significant decline in profit. In addition to declining pulp export prices due to overseas market conditions, decreased sales volume and export prices stemming from declining paper demand in the Asian region, rising raw material and fuel prices and increased fixed costs also squeezed costs. On the other hand, full production and full sales of household paper, and expansion measures for domestic Printing Paper and Packaging Paper, achieved certain results. The impairment loss of ¥2,726 million recorded in the prior period (related to Chuetsu Eco Products Co., Ltd.) shrank to ¥38 million in the current period.
Key Products
Growth Drivers
- Acquisition of new demand and profit contribution through full production and full sales of the newly installed household paper (sanitary paper) machine
- Expansion of domestic sales in Packaging Paper through substitute demand for corrugated cardboard and strengthened proposals as an environmentally conscious packaging material
- Maintenance and expansion of volume and value in Printing Paper through domestic expansion measures (such as actively capturing spot orders)
- Capturing substitute demand in Newsprint arising from other companies' withdrawal from the business
- Profit contribution in the specialty paper and processed products field through strong export sales of cup noodle containers in paperboard and processed products
- Cost reduction through stable operations and efficient production, centered on 'strengthening the paper and pulp business foundation' under the Medium-Term Management Plan 2030
Risks
- Structural decline in demand for graphic paper (Newsprint, Printing Paper) due to population decline and progressing digitalization
- Deteriorating export environment due to declining demand in the Asian region and intensified export pressure from China
- Risk of declining pulp export prices due to deteriorating overseas market conditions
- Cost pressure from rising fixed costs such as raw material and fuel prices, logistics costs, and repair costs
- Risk of downside to domestic and overseas economic conditions due to U.S. trade policy trends and worsening Middle East situation
- Concerns over transportation capacity due to driver shortages, and rising costs of raw materials, fuel, and steel materials due to yen depreciation and price increases
Last updated: June 25, 2026