TOP Message

On October 1, 

 

KOKUSAI PULP & PAPER CO., LTD. adopted a holding company system through an absorption-type company split. The splitting company in the absorption-type split will change its trade name to KPP Group Holdings Co., Ltd. and maintain its listing as a holding company. In addition, the Successor Company will change its name from Kokusai Pulp & Paper Split Preparation Company to KOKUSAI PULP & PAPER CO., LTD., and will inherit the rights and obligations of the pulp and paper wholesaling businesses. We ask for your continued support.

 

As a result of the series of overseas M&As that preceded the transition to the holding company system, the overseas sales ratio has reversed the domestic sales ratio and is expected to increase further in the future. In addition, 90% of our 100 affiliates are located overseas, and more than 80% of our employees are non-Japanese. As described above, the scale of business at the time of listing in 2018 and the current situation after the implementation of M&A have significantly changed, including the portfolio, and the way of group management has become a new issue.

 

The purpose of this transition to a holding company system is to build a Group management structure that will strengthen global governance, deepen portfolio reforms and new businesses, and promote sustainability management with greater speed in line with business expansion.

 

In the pulp and paper industry, the spread of the Internet has led to a shift to paperless operations. The graphic media market, which has been our mainstay business until now, has already shrunk to under 25% of total demand of paper in the developed countries. This market includes newsprint, printing, writing, and information paper. Accordingly, we believe we do not have to care too much about pessimism about excessive paperless operations, and it is necessary to focus on the packaging, sanitary and processed paper fields, where demand is growing.

 

In addition, the expansion of e-commerce has led to growth in demand for corrugated packaging, the substitution of plastic for paper products is progressing, and the use of sanitary paper is spreading as a measure against new viruses. Thus, it is no exaggeration to say that the main battlefield for paper has already shifted to a new stage. Furthermore, the shrinking demand for graphics in major countries will be compensated for by the growing demand for packaging and sanitary paper in India and African countries, which have huge demographic bonuses.

 

The KPP Group will share future forecasts based on data management with the entire Group. We will contribute to the realization of a sustainable society through the strength of our comprehensive recycling-oriented business in Japan and our overseas Group companies that promote package and visual communication businesses.

Madoka Tanabe

Representative Director of the Board
Chairman
October 2022

We would like to express our heartfelt gratitude for your continued support of the KPP Group.

My name is Yasuyuki Sakata, President and CEO.

 

Thanks to your unwavering support, our company celebrated its 100th anniversary last year. As we take our first step toward the next century, we have launched our long-term management vision, “GIFT 2030,” along with our Fourth Medium-Term Management Plan, which commenced in April of this year.

 

The three regional headquarters that support the KPP Group have evolved from our founding business in paper and have grown into leading companies in their respective regions. Since the 2000s, in response to significant changes in the business environment—particularly due to digitalization—we have been transforming our business portfolio. In overseas markets especially, we have focused on expanding our presence in businesses derived from the paper industry, such as packaging and visual communication, and on strengthening our position in these areas.

 

Under our “GIFT 2030” vision, we aim to become a world-class global company that continues to deliver high-quality, value-added products, services, and solutions to meet the needs of our customers. While continuing to explore the potential of paper, our founding business, we are also committed to transforming our business portfolio, creating new businesses, and expanding into new domains.

 

Our business strategy during the period of the Fourth Medium-Term Management Plan focuses on four key priorities: expanding our business domains, transforming our business portfolio, pursuing global synergies, and advancing e-business and driving digital transformation (DX). We are fully committed to each of these initiatives to ensure we continue delivering genuine value in an ever-changing world. Through these efforts, we aim to achieve sustainable growth and further enhance our corporate value.

 

We remain steadfast in our commitment to embracing new challenges and driving transformation to meet your expectations. We deeply appreciate your continued support and encouragement.

Yasuyuki Sakata

Representative Director of the Board

President & Chief Executive Officer

June 2025