1

History of Global Expansion

150 Years of History

Since the 1970s, the Oji Group has been expanding overseas in various fields. In this section, wesince 1971

introduce the challenges faced by companies that have expanded their business activities around thePan Pac Forest Products Ltd.（Pan Pac）

world. The following five companies were established in the 1970s and 1980s, at the beginning of theOji Group's overseas expansion.

Pan Pac1

1971.52

1971.12 Establishment

JANT

3

1973.8CENIBRA

Brazil4

1986.11 Establishment

KSP

U.S.A.

5

1988.8HSPP

CanadaEstablishment

EstablishmentEstablishment

Global Expansion Progress

New Zealand

Oji Group's first overseas lumber andpulp manufacturing company

New Zealand

Papua New Guinea

In the 1960s, the supply-demand balance for domestic chips was tight, and major Japanese pulp and paper manufacturers who had begun
importing raw materials from overseas needed to plant forests overseas to secure long-term resources.
Meanwhile, in New Zealand, an international tender was held in 1969 for a national forest in the central part of the North Island that was about
to reach the optimum age for logging, and local forest company Carter and Japan's Kokusaku Pulp (now Nippon Paper Industries Co., Ltd.) wonthe bid. In 1971, three companies, Carter, Kokusaku Pulp, and Oji Paper, launched a large-scale project to produce pulp and lumber, and jointly
established Carter Oji Kokusaku Pan Pacific Limited (Pan Pac). Today, Pan Pac is an important base for the Oji Group, operating as acomprehensive forestry company engaged in forestry, sawmilling, and pulp operations.

154
2

3

45

❶ Current Pan Pac. Pulp mill (on the left), lumber mill (on the right), and Pan Pac's own forest (in the back). ❷ Pan Pac in 1971. Aerial view of the mill when it was first built.❸ Biomass boilers. Steam isgenerated from wood chips and other materials produced in the lumber production process and used in the drying process of lumber and for in-house power generation. ❹ Logs being delivered by log
truck ❺ Warehouse at the port of Napier, a shipping port. Pulp is loaded onto the ship by a clamp lift.

Company Profile

2Company Name
Pan Pac Forest Products Ltd.

31Business
Forest Operations,
Manufacturing and Sales ofPulp and Lumber ProductsHistory����������������

Year of establishment1971
Location
Napier, New Zealand��������

Carter Oji Kokusaku Pan Pacific Limited (Pan Pac) was establishedNapier Mill began operations
Forest assets and land use rights transferred from Carter Holt Harvey (formerly Carter)

Carter Holt Harvey left the Pan Pac joint venture, and it became a 100% Japanese joint venture
between Oji Paper and Sanyo Kokusaku Pulp (Kokusaku Pulp merged with Sanyo Pulp in 1972;
this is now Nippon Paper Industries). The company name was changed to Pan Pacific ForestIndustries (N.Z.) Ltd.
Company merged with a forest holding company and name changed to Pan Pac Forest Products Ltd.
Oji Paper purchased Nippon Paper Industries' stake in Pan Pac,
making Pan Pac a wholly owned group company

150 Years of History

2

Global Expansion Progresssince 1971

3since 1973

JANT Pty. Ltd.（JANT）

Papua New Guinea

Aiming to cover 100% of the overseas chipproduction industry through afforestation
After 1965, Honshu Paper was looking for a raw material producing area to prepare for the installation of the L-1 machine (in operation in 1974),
boasting the largest production volume in Japan at that time, at its Kushiro Mill. Based on the proposal received in 1968 from the then chairman ofthe Japan-Australia Economic Committee of Keidanren (Japan Business Federation) to develop Papua New Guinea, which had been the site offierce fighting during World War II, in 1971, JANT Pty. Ltd. was established with Honshu Paper, Nomura Securities Co., Ltd., The Dai-Ichi Kangyo
Bank, Ltd., and The Mitsui Bank, Ltd. as shareholders. In 1974, a local wood chip mill was completed and began supplying wood chips to theKushiro Mill. 1977 saw the establishment of a plantation company and the start of full-scale eucalyptus afforestation. Converting the tree species
to Acasia, the company proceeded with afforestation for the production of wood chips. In 2004, the company completed its role and withdrew fromthe business, but it was a pioneer in overseas afforestation projects undertaken by the Japanese pulp and paper industry to secure raw materials
in the future.

Celulose Nipo-Brasileira S.A.（ CENIBRA）

BrazilJapan-Brazil National ProjectIn the late 1960s, Japan's paper industry was seeking a way to secure a stable supply of chips and pulp as production increased. It was inthese circumstances that Rio Doce (now Vale), a major Brazilian resource company, expressed to Oji, through Itochu Corporation, its desire toconduct a tree-planting project for the purpose of exporting wood chips, which prompted the Japanese government at the time to recognize
this plantation project in Brazil as a national project. In 1971, 11 major pulp and paper manufacturers, including Oji Paper, and ITOCHU
Corporation established what is now Japan-Brazil Pulp and Paper Resources Development Co. (hereinafter, JBP). Today, JBP is recognizedworldwide not only for its role as a major base for the Group, but also for its ongoing efforts to promote sustainability.

221

34❶ Chip factory. The produced chips were exported to Japan from the port of Madang. ❷ Growing acacia seedlings for afforestation ❸ Tower yarder. This was used to collect downed round log.

❹ Acacia seedlings before afforestation. Transported to the afforestation site and prepared for planting.

Company ProfileCompany Name
JANT Pty. Ltd.
Business
Wood chip production,wood processing, and afforestation(while at the Oji Group)Year of establishment
����Location
Madang Province,
Papua New GuineaHistory����������������������������13❶ Current CENIBRA ❷ The current nursery produces approximately 20 million seedlings per year. ❸ The line 2 started operations in 1995. Since it was a national project, the completion ceremony
was a grand affair, with the then-president of Brazil and the governor of the state invited to attend.

Company Profile
Received proposal to develop PNG
Establishment of Japan New Guinea Timber Wood Co.Ltd.
Establishment of JANT Pty. Ltd.
Chip mill completed and woodchip production startedExperimental afforestation started
Establishment of Gogol Reforestation Co. LTD. based on a contract with the PNG government
Withdrew from businessCompany Name
Celulose Nipo-Brasileira S.A.
(CENIBRA)
Business
Afforestation and Manufacturing
and Sales of Wood Pulp
Year of establishment
����Location
Minas Gerais, BrazilHistory����Japan Brazil Paper and Pulp Resources Development Co.,Ltd. established����The line 1 of pulp mill started operation (255,000 tons/year)��������
����
����

����
����

CENIBRA establishedThe line 2 of pulp mill started operation (700,000 tons/year)
Received Forest Stewardship Council (FSC)
and Brazilian Forest Certification Program (CERFLOR) certification
Annual production reached 1,200,000 tons after multiple constructions to increase production
CENIBRA became a wholly owned group company
Awarded the Gold Medal from Ecovadis, a sustainability assessment organization

150 Years of History

4

Global Expansion Progresssince 1986

5

Global Expansion Progresssince 1988

Kanzaki Specialty Papers Inc.（KSP）

U.S.A.

Kanzaki Paper had been expanding exports of thermal paper and other products to the US market, taking advantage of the depreciation ofthe yen until 1985, but the appreciation of the yen against the dollar after the Plaza Accord caused export earnings to decline. In 1986,
Kanzaki Paper acquired Ludlow's Ware Mill (Thermal paper and Adhesive paper) in Massachusetts, to secure a share of the US market
through local production, and established Kanzaki Specialty Papers Inc. (KSP).
After the merger of Oji Paper and Kanzaki Paper in 1993, the technological capabilities of Oji and Kanzaki were integrated within KSP, enabling
it to become one of the top thermal technology companies in the US market. Today, KSP continues to respond to changes in the market's demand
structure, constantly shifting its focus to high-value-added products and capturing the solid demand for Thermal paper in North America.

After 1985, with the rise of inexpensive imported paper due to the appreciation of the yen and the decline in the cost competitiveness ofdomestic production bases becoming a major issue, Oji Paper considered producing newsprint directly in North America, the source of its chip
supply, and exporting and supplying the paper to Japan.
In April 1988, Howe Sound Pulp and Paper Limited (HSPP) was established as a fifty-fifty joint venture with Canfor,
a leading Canadian lumber, chip, and pulp manufacturer that produced kraft pulp in British Columbia. HSPP met thestringent quality and service requirements of Japanese newsprint overcoming cultural barriers and established a stablesupply. However, in 2010, the company left the Oji Group due to a combination of factors, including restrictions on
deforestation in Canada since 2000, and the increasing requirement for the higher ratio of recovered paper in Japanesenewsprint.

2345❶ #20CM (in operation since 1989) . The company has two thermal paper coaters, #20CM and #11CM (in operation since 1972). ❷ Exterior view of the office. Located at about the same latitude asTomakomai City, the region has very cold winters and heavy snowfall. The area is rich in nature and wildlife such as deer, bears, and skunks can be seen. ❸ Exterior view of Ludlow's predecessor,McLaurin & Jones (1916) ❹ Panoramic view of the company when It was Ludlow (1985) ❺ Panoramic view of KSP (2005)

Company ProfileHistory

Company Name
Kanzaki Specialty Papers Inc.
(KSP)

����Business
Manufacture and sale ofthermal paper, etc.
Year of establishment
����Location
Massachusetts, U.S.A.

������������
����
����

Kanzaki Paper acquired Ware Mill and established KSP
Kanzaki Paper and Oji Paper merged
Sold the adhesive business
Construction of new warehouse
Completion of thermal coater modernization work
Upgrading of wastewater treatment facilities

CanadaFull-scale Newsprint projectin Canada aming at the Japanese market

First overseas market-ready project1

Howe Sound Pulp and Paper Limited（HSPP）❶ Panoramic view of the factory. The mill was surrounded by mountains and the sea.

Company ProfileHistory

Company Name
Howe Sound Pulp and PaperLimited（HSPP）

����Business
Production and sales of newsprintand pulp (while at the Oji Group)Year of establishment
����Location
British Columbia, Canada��������������������

����

The Port Mellon mill began operations(at the time, the British Canadian Wood Pulp and Paper Company started up the mill)Acquired by Canfor
Howe Sound Pulp and Paper Limited (HSPP) established and modernization work began
Production of commercial pulp started at new facilities
Completion of newsprint facilities and start of production
Company name changed to Howe Sound Pulp and Paper Limited Partnership (HSLP)
Sale of HSLP