Nippon Paper Targets Global Expansion of Packaging Business

SEATTLE (Scrap Monster): Japanese pulp and paper giant Nippon Paper Group plans to sign more international deals as part of its goal to expand its packaging business. The planned investments will further consolidate its market presence in the region.

Nippon Paper had entered Japanese market through purchase of Australian Paper from Paperlinx in June 2009.

The company had recently announced an agreement with Orora Limited towards purchase of paperboard fibre based packaging business in Australia and New Zealand. The AUD $1.72 billion acquisition is considered as the company’s largest transaction outside of Japan. Furthermore, it is a step in new direction, as it will mark Nippon Paper’s entry into the integrated corrugated paperboard manufacturing business in the Oceania region. The purchase, subject to final approval from authorities, is expected to be completed by March next year.

Recently, it had also acquired paper cup and food packaging businesses in India and Vietnam as part of efforts to expand its footprint in the Asian region.

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The company stated that it will focus on further expanding into the fibre business globally. The very fact that Japanese market is quite mature, offers them the possibility of looking for global expansion of its operations. The company will look for businesses that can be added to its portfolio, the press release said.

In addition to its focus on packaging, Nippon Paper will also spotlight on enhancing its copy paper portfolio.