Mitsubishi Paper Mills Ltd. announced Monday it has dropped a business and capital tieup plan between its subsidiary Kitakami Hitec Paper Corp. and Oji Paper Co.
Mitsubishi Paper, Japan's fifth-largest paper maker in terms of sales, said it was no longer interested in the plan, which had been on the table since January, because talks not not yielded any progress.
Mitsubishi Paper said Kitakami Hitec will rehabilitate itself as the subsidiary is expected to turn a profit in fiscal 2006 through March 2007 thanks to its efforts to streamline unprofitable businesses.
Mitsubishi Paper is currently going its own way. It withdrew in May from a merger plan with Chuetsu Pulp & Paper Co. slated for last Saturday after splitting over sales strategies. In July, it ended a five-year capital and business alliance with Hokuetsu Paper Mills Ltd.