The nation's second and fourth largest paper firms will merge operations under a holding firm in April 2001, the two firms formally announced Monday.
The proposed integration of Nippon Paper Industries Co., the No. 2 firm, and Daishowa Paper Mfg. Co. aims to streamline excessive production capacities and pursue an efficient corporate group strategy under the holding firm, top officials of the two companies said.
The integration will form the largest paper company in Japan, based on consolidated sales in fiscal 1998, which came to about 1.22 trillion yen, according to the firms. "Both companies have excessive (production) capacity. We manufacture similar products at plural facilities. This means that we have much room to consolidate," said Masao Kobayashi, president of Tokyo-based Nippon Paper.
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