Nippon Paper’s Kumamoto Mill Faces Extended Shutdown After Earthquake Damage

Nippon Paper Industries Co.'s mill in Yatsushiro, Kumamoto Prefecture, remains suspended nearly a month after a recent Kumamoto earthquake caused significant damage, including the collapse of a chimney, with the company saying the timeline for restarting production remains undetermined.

Three of the mill's five chimneys were damaged. One collapsed and struck an office building, killing nine people, including some company employees. The company has also confirmed damage to electrical systems and belt conveyors used to transport wood chips.

President Akira Sebe said on Aug. 5 that determining the full extent of the damage was a priority before operations could resume. Nippon Paper plans to establish an investigation committee that includes external experts to examine the cause of the incident.

The Yatsushiro mill produces printing paper and newsprint and is the only newsprint production site in the Kyushu region. It accounted for approximately 9% of Japan's domestic newsprint production in 2025. Nippon Paper's Iwanuma mill in Miyagi Prefecture is providing replacement supplies, while other producers, including Oji Holdings Corp., Daio Paper Corp. and Chuetsu Pulp & Paper Co., are reportedly expected to assist.

Sebe said the company is not currently considering closing the Yatsushiro mill. However, recovery costs and lost sales could affect its financial performance. Nippon Paper had announced plans in January to reduce printing paper production at the site and invest approximately 31 billion yen to expand household paper production capacity.

On Aug. 5, the company revised its consolidated earnings forecast for the fiscal year ending March 2027 to undetermined, citing the earthquake and other factors. It had previously forecast net sales of 1.22 trillion yen and net profit of 10 billion yen. Daiwa Securities analyst Noritsugu Hirakawa said restoration costs could reach tens of billions of yen.