Chuetsu Pulp & Paper Unveils Business Transformation Strategy Focused on Core Operations, New Businesses and Decarbonization

Chuetsu Pulp & Paper Co., Ltd. has outlined a business structure transformation strategy under its forthcoming “Medium-Term Management Plan 2030,” centered on strengthening its paper and pulp operations, expanding new business areas, and advancing green transformation (GX) initiatives, following the release of its fiscal 2025 results.

The company reported fiscal 2025 consolidated sales of ¥110.4 billion, down ¥623 million from the previous year, as weaker pulp export prices offset gains from paper price revisions. Operating profit fell to ¥2.74 billion from ¥4.84 billion a year earlier, reflecting higher raw material, fuel, repair and labor costs. Net income attributable to shareholders rose to ¥2.44 billion, aided by the absence of impairment losses recorded in the prior year.

For fiscal 2026, Chuetsu Pulp & Paper forecasts sales of ¥114 billion and operating profit of ¥2.3 billion. The company expects paper price adjustments and a recovery in pulp export markets to support revenue growth, while continued inflation in wood chips, fuel and logistics costs is expected to weigh on earnings.

As part of its long-term strategy, the company said it will continue restructuring existing businesses while expanding growth areas including sanitary paper, externally sold pulp and cellulose nanofiber (CNF) applications. CNF products marketed under the “nanoforest” brand have been adopted in cosmetics, watch bands, livestock and agricultural applications, according to the company.

Chuetsu Pulp & Paper also highlighted progress on environmental targets. The company reported a 51.1% reduction in fossil fuel-derived CO₂ emissions from manufacturing processes compared with fiscal 2013 levels, surpassing its previous 2030 goal of a 50% reduction. Under the new Medium-Term Management Plan 2030, the target has been raised to a 55% reduction. The company is also participating in a hydrogen-related decarbonization project with Shimizu Corporation that was selected for support by Japan’s New Energy and Industrial Technology Development Organization (NEDO).