OREANDA-NEWS. August 05, 2011. Nippon Paper Group, Inc.has developed a plan to revitalize the group paper business. The plan is not only designed to achieve a recovery at mills affected by the March 11 Great East Japan Earthquake, but also to respond to the severe business environment in the Japanese paper market, company said in a statement received by Lesprom Network.

The plan calls for a shutdown of the facilities, focusing on facilities with high manufacturing costs, that combined produce 800 thousand tons of paper a year, equivalent to approximately 15% of the Group’s domestic paper production capacity. It also calls for the Group to withdraw from the production of certain unprofitable paper products.

In step with the shutdown of the facilities, the Group will reduce fixed costs to boost its competitiveness. It also enables various cost reductions, including a zero-oil initiative at major mills, to manage the risk of a further rise in the price of fossil fuels in the future.

The Nippon Paper Group will move forward the plan, aiming to strengthen the Group’s paper business as well as to achieve a rapid recovery at the affected Ishinomaki Mill.