Sowing the seeds for a sustainable future At Nippon Paper, we are committed to developing products and technologies that provide a solution to today's environmental challenges and contribute to a sustainable tomorrow. Learn more about our innovative products · Nippon Paper Industries has completed April 30, the earlier announced purchase of Orora Limited’s paperboard and fibre based packaging business in Australia/New Zealand. The Company will appoint its Director Mr. Masanobu Iizuka as the CEO of Opal effective June 25, · Orora has announced the sale of its Australasian fibre business to Nippon Paper Industries (NPI) for AUD1, million. In all, the transaction includes 25 manufacturing plants, 27 depots and involves more than 3, employees. The key to the transaction is Orora’s corrugated box business, including the Botany mill
The Australian Financial Review
Orora has announced the sale of its Australasian fibre business to Nippon Paper Industries NPI for AUD1, orora nippon paper, million. In all, the transaction includes 25 manufacturing plants, 27 depots and involves more than 3, employees. The re-integration of the supplies of containerboard materials must be expected to deliver synergies and unlock value. The re-integration comes about as Australia is in the midst of a deep and increasingly distressing drought appears to be coincidental.
The other is the privately-owned Visy, which is the clear market leader in the corrugated box orora nippon paper in Australia. InAmcor de-merged its main papermaking assets into a company called PaperlinX. That included the Maryvale Mill Latrobe Valley, Victoria and its PM4, on which virgin Kraftliner was manufactured, and PM1, on which Sack Kraft is manufactured.
That separation saw the Maryvale mill selling most of its Kraftliner production to Amcor now Ororaas well as exporting significant volumes.
The Maryvale mill also supplied Sack Kraft to Amcor to manufacture bags and sacks. The separation of the fibre packaging assets created challenges for those on both sides of the transactions that are, on face, removed by this return to the fold, orora nippon paper.
InNPI purchased Australian Paper, which included the Maryvale mill from PaperlinX. Australian Paper continued to supply Orora nippon paper to Amcor, from the Maryvale mill. Then inAmcor orora nippon paper most of its Australasian business to create Orora. Again, Australian Paper continued to supply Kraftliner to Orora, from the Maryvale Mill.
At least initially, IndustryEdge considers it unlikely that there will be significant operational impacts. Certainly, that is the case when it comes to the supply of materials for the manufacture of corrugated boxes. There is currently a notable lack of competition between the Maryvale virgin grades and Botany recycled grades facilities. Whether in Australasia, Asia or globally, the strongest expansion opportunities for the paper and paperboard sector lie in packaging and industrial paper markets.
Operating a single but very modern, well equipped and capable paper machine at the Botany mill, Orora was constrained primarily by capacity in its further development, in a way that its main competitor, Visy, orora nippon paper, was not.
With five machines at the Maryvale Mill, two of them already supplying Orora substantially, the combined competitive capabilities of NPI in Australasia are significantly improved. Australian Paper manufactures Kraftliner on PM4 at its Maryvale Mill in the Latrobe Valley Victoria. In a corrugated box market in which the fully integrated Visy dominates and Orora is a solid second, orora nippon paper, there is a logic and commercial rationale to reintegrating the corrugated box offering of Orora, with the supplier of its high-performance liners.
The impact of the drought can be seen in the modest decline inbut more importantly, the residual strength of the market is obvious. By [1]orora nippon paper, consumption had grown an average 5. The total New Zealand market was 0. Although the details are not yet known, all indications are that the Australasian fibre business will be structured with the existing Australian Paper business.
It makes sense to integrate the corporate and back-office functions of the two units. However, orora nippon paper, there are greater opportunities. The Australasian corrugated box market has only three significant participants: Visy, Orora in conjunction with Australian Paper and the New Zealand based Oji Fibre Solutions OFS.
Visy and OFS are integrated businesses, able to leverage fibre, operational and market opportunities across and throughout a single business. That opportunity will shortly also belong to NPI. In the corrugated box market, that could orora nippon paper to be significant, as could the combined international capabilities of the two businesses.
NPI is strategically focussed on packaging orora nippon paper into the future. That it is extending its footprint beyond Kraftliner and following a fully-integrated path in Australasia that has already been trodden by Japanese counter-part Oji is notable.
What may seem less obvious is the increasing nod to recycled grades and to paper recovery. Australian Paper already uses some recovered fibre in some grades of its Kraftliner made at Maryvale and operates a deinking plant for recycled office paper production. Sign up right now for instant access to market information, samples of our publications, various market and product guides and analysis and view some orora nippon paper our forum presentations. You will also be regularly updated via our blog.
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· Nippon Paper’s purchase of Orora’s fibre-based packaging mill means it can meet emerging customer needs Announced last week, the acquisition — worth an enterprise value of $bn Australian ($bn US) — will be made by the Japanese company’s fully-owned subsidiary Australian Paper · Orora has announced the sale of its Australasian fibre business to Nippon Paper Industries (NPI) for AUD1, million. In all, the transaction includes 25 manufacturing plants, 27 depots and involves more than 3, employees. The key to the transaction is Orora’s corrugated box business, including the Botany mill Announcement Nippon Paper Industries Co., Ltd has announced an agreement with Orora Limited to purchase its Australasian Fiber Packaging Business 2 The Scope of This Transaction Expand Acquisition Business in Growing ANZ Market
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