Rengo Co., Ltd. (Head Office: Kita-ku, Osaka; Chairman, President & CEO: Kiyoshi Otsubo) announces its consolidated subsidiary, Osaka Paper Co., Ltd. (Head Office: Nishiyodogawa-ku, Osaka; President: Akiyoshi Yoshino; hereafter “Osaka Paper”) has decided to withdraw from the newsprint and printing paper business at the end of March 2016.
Reason for withdrawal
Osaka Paper entered the newsprint and printing paper business in 1947, and has been contributing to Japan’s high economic growth and the upgrading of the information and communications industry mainly through the sale of newsprint. However, due to recent changes in the business environment, such as the reduction in circulation of newspapers, continuation and growth of the newsprint and printing paper business is assessed to be difficult, and Osaka Paper will instead focus resources on its other main business in boxboard.
Osaka Paper will close newsprint and printing paper PM1 at the end of December 2015, and stop sales activities at the end of March 2016.