Oji Group Accelerates Business Transformation, Placing Forest Biomass and Sustainable Packaging at the Heart of Its Growth Strategy

Oji Group, one of Japan’s leading pulp, paper and packaging companies, is accelerating its business transformation to create new value from renewable forest resources, strengthen sustainable packaging solutions and contribute to a more sustainable global economy.

According to the Oji Group Integrated Report 2026, the Group is advancing its Long-term Vision 2035, titled “Dedicated to Sustainability,” with a strategic focus on improving capital efficiency, transforming its business portfolio and promoting sustainability.

With paper manufacturing facing structural changes and declining demand in certain traditional markets, Oji Group is expanding beyond conventional paper manufacturing by developing forest biomass and sustainable packaging as its next growth pillars.

Harnessing the Potential of Forest Resources

Forest resources remain at the centre of Oji Group’s business philosophy and long-term growth strategy. The Group has more than 100 years of experience in sustainable forest management and owns approximately 637,078 hectares of forests, representing one of the largest privately owned forest areas in Japan.

The Group aims to maximise the environmental, economic and social value of these resources through responsible forest management, biodiversity conservation, carbon absorption, water resource protection and the development of renewable materials.

Moving beyond traditional paper products, Oji Group is exploring opportunities to convert wood resources into bioethanol, biomass plastics, biomass films, chemicals and other innovative materials that can serve as alternatives to products derived from fossil resources.

Forest Biomass Business: A New Growth Engine

The forest biomass business is a key pillar of Oji Group’s transformation strategy.

In Japan, the Group has started operations at a pilot plant for wood-derived sugar solutions and ethanol at Oji Paper’s Yonago Mill, marking progress towards commercialisation.

Internationally, the acquisition of Austria-based AustroCel in January 2026 has strengthened the Group’s biorefinery capabilities. AustroCel utilises wood resources to manufacture dissolving pulp, bioethanol and hydrogel for soil moisture retention, while also utilising biomass to supply bioenergy to local communities.

By integrating these capabilities across its global operations, Oji Group aims to maximise the value of forest resources and accelerate the development of a circular, resource-efficient business model.

Expanding Sustainable Packaging Solutions

Sustainable packaging is another major growth area for the Group.

Following its acquisition of Finland-based Walki in 2024, Oji Group is leveraging advanced environmental technologies and European market expertise to strengthen its sustainable packaging business.

The Group is also expanding its liquid packaging carton operations in Southeast Asia. In December 2025, it established Oji Liquid Pak in Vietnam and decided to construct a new manufacturing facility for converted paper used in aseptic carton packaging.

In addition to developing sustainable packaging products, the Group is working towards establishing collection and recycling systems in cooperation with customers and local communities. Its Renewa technology, which enables the recycling of difficult-to-process recovered paper, is expected to support these initiatives.

Advancing Innovation and Financial Performance

Under Medium-term Management Plan 2027, Oji Group is focusing on improving profitability, strengthening operational efficiency, restructuring low-profitability businesses and accelerating investment in growth areas.

For FY2025, the Group reported consolidated net sales of ¥1,861.7 billion and operating profit of ¥34.6 billion. While operating profit was below its initial target, the Group is implementing measures to improve profitability and strengthen its financial foundation.

Its FY2027 targets include:

• Return on Equity (ROE): 8.0%

• Consolidated operating profit: ¥120 billion

• Profit attributable to owners of parent: ¥80 billion

• Net debt-to-equity ratio: 1.0 or less

The Group is also accelerating research and development in areas such as biomass-derived chemicals, pharmaceuticals, healthcare materials and advanced functional materials.

Sustainability at the Core of Global Growth

Oji Group’s sustainability strategy focuses on three interconnected priorities: carbon neutrality, nature positivity and the circular economy.

Through sustainable forest management, renewable material development, resource circulation and reduced dependence on fossil-based materials, the Group aims to contribute to environmental protection while generating long-term economic and social value.

The Group is also strengthening its organisational capabilities through digital transformation, human resource development and corporate governance reforms to support its global operations and long-term ambitions.

Looking Towards 2035

Commenting on the Group’s direction, President and CEO Hiroyuki Isono has emphasised the importance of stewarding forests and unlocking their untapped potential as the foundation for future growth.

The Group’s vision is to integrate sustainable forest management with innovative manufacturing and resource circulation, creating value that extends beyond traditional paper products.

Through its continued investments in forest biomass, sustainable packaging and technological innovation, Oji Group aims to strengthen its global competitiveness, contribute to a sustainable society and create a brighter future for generations to come.