Oji Holdings Corp., Japan, this past week announced that it will install a new containerboard machine at GS Paperboard & Packaging Sdn Bhd (GSPP), located in Malaysia. The new machine will have a production capacity of 450,000 metric tpy of liner and corrugating medium. Startup is planned for April 2021.

Oji Holdings will invest some JPY 35 billion for the new machine and related equipment for energy supply and water treatment.

In regard to the investment, the company noted that "Oji Group sets expansion of overseas business as a fundamental policy of its management strategies, and its corrugated container business has continued to expand in Southeast Asia, thanks to steady demands in the region. While Oji is operating more than 20 sites for converting, most of the base paper used for converting comes from external suppliers. It has been a challenge for the Group to improve its self-sufficiency of base paper. In addition, there are increasing demands for products with high quality and low unit weight in the containerboard market in Southeast Asia.

"By starting up a new containerboard manufacturing machine, we will be able to respond to the mentioned challenges, lay a foundation for further business expansion, and also increase market share.

"Furthermore, by renovating the existing equipment for energy supply and water treatment at the same time, the new containerboard machine allows us to enhance our cost competitiveness and therefore leads to a strengthened business foundation for Oji," the company pointed out, adding that there will be no impact on Oji Group’s financial results forecast ending March 2018 do this investment.