Nippon Paper Industries Sells Port Angeles Mill to U.S. Subsidiary of Bio Pappel
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Nippon Paper Industries Co., Tokyo, Japan, this week announced the sale of its Port Angeles, Wash., USA, paper mill and cogeneration assets, which are owned and operated by Nippon Paper Industries USA Co., to McKinley Paper Co. McKinley is the U.S. subsidiary of Bio-Pappel, a Mexico-based paper and paper products business.
Nippon Paper Industries acquired the Port Angeles mill in 1988 to produce and sell printing and writing papers, including telephone directory paper. Although NPIUSA performed well in sales and leveraged lightweight and high quality paper products, mainly in the North American market, for many years, it has recently been facing a severe business environment due to diminishing demand for its products.
After conducting a strategic review of its global operations as part of its fifth medium-term business plan (FY2015-FY2017), Nippon Paper concluded that the Port Angeles mill did not fit with its global strategy and objectives and began looking for an appropriate buyer. McKinley intends to sustain the Port Angeles mill operation.
