Tokushu Tokai Paper

Basic Information

Stock Code
3708
Industry
Pulp and Paper
Category Detail
Paper & Paper Products
Prefecture
Tokyo
Establishment Year
April 2007
Listing Year
April 2007
Official Website
https://www.tt-paper.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Oji Holdings, Nippon Paper, Chuetsu Pulp, Okayama Paper, Awa Paper, Rengo, Furubayashi Paper Manufacturing, Tomoku, DynaPac, The Pack, Omura Paper

Overview

Tokushu Tokai Paper is a mid-sized major company in the paper manufacturing industry established in 2007, featuring high technological capabilities and environmentally considerate production centered on specialty papers in industrial and household paper fields.

Current Situation

Tokushu Tokai Paper recorded consolidated sales of approximately 80.7 billion yen for the fiscal year ended March 2022, establishing a solid position in the specialty paper market. Its core specialty paper business spans diverse fields such as anti-counterfeit paper, information paper, and fancy paper, with a focus on technological development. In 2016, it strengthened its corrugated board base paper business through a business alliance with Nippon Paper, building a flexible production system. The company is proactive in sustainable resource management utilizing Japan's largest company-owned forest, and promotes environmental load reduction through its own power generation facilities. In 2023, it relocated its Tokyo head office to the Tekko Building to further build an efficient management structure. Moving forward, it aims for sustainable growth by developing new businesses and enhancing environmentally responsive technologies centered on the specialty paper field.

Trivia

Interesting Facts

  • Mid-sized papermaking company with top-class specialty paper technology in Japan.
  • Company-owned forest is one of Japan's largest, with thorough forest resource management.
  • Owns in-house hydroelectric power plant, contributing to reduced environmental impact.
  • Transitioned to a business holding company structure via merger in 2010.
  • Located in nature-rich area of Shizuoka Prefecture, developing environmentally harmonious businesses.
  • Launching whiskey distillery as new business utilizing forestry resources.
  • Implemented strategic alliance with Nippon Paper in specific fields.
  • Conducting corrugated board business through joint venture company.
  • Head office in Tekko Building, pursuing management efficiency.
  • Holds certain share in security printing paper market.
  • Actively acquiring ISO and environmental certifications.
  • Built growth foundation despite being relatively young in the papermaking industry.
  • Participating in forest culture and nature conservation activities in company-owned forests.
  • Diverse product lineup of design and fancy papers.
  • In-house power generation facilities are key assets covering part of factory power.

Hidden Connections

  • Mitsubishi Corporation provides capital support as a major shareholder.
  • Conducting joint venture in corrugated board base paper field with Nippon Paper.
  • Built manufacturing system closely linked with forestry resources in Shizuoka Prefecture.
  • Historically partnered with Oji Paper in specialty paper field.
  • Newly built whiskey distillery in company-owned forest area is an example of cross-industry collaboration.
  • Head office in Chiyoda Ward located in major building for regional industry promotion.
  • Preserving and displaying old equipment from Akamatsu Power Plant as in-house power station.
  • Has collaborative relationships with multiple companies in the papermaking industry for production and sales strategies.

Future Outlook

Growth Drivers

  • Strengthening technological capabilities in specialty paper market and developing new applications
  • Shift to environmentally considerate manufacturing processes
  • Improved cost competitiveness through in-house power generation, etc.
  • Synergy realization through strategic alliance with Nippon Paper
  • Diversification of forestry resource utilization and new business development
  • Product diversification and higher added value
  • Environmental technology development in response to strengthened domestic and international regulations
  • Expansion of sales of digital printing compatible products
  • Coexistence with regional communities based on regional collaboration
  • Improved production efficiency through introduction of advanced technologies
  • Building sustainable business models
  • Strengthened employee education and technical personnel development

Strategic Goals

  • Secure over 30% domestic share in specialty paper market
  • Reduce CO2 emissions by 50% compared to 2010
  • Proper management of company-owned forests and maximization of environmental value
  • Achieve 20% sales ratio from new businesses
  • Over 80% sales ratio of environmentally certified products
  • Promotion of smartization and automation of production equipment
  • Expansion of specialty paper exports to overseas markets
  • Strengthened collaboration with regional communities and expanded CSR activities
  • Improved employee satisfaction and thorough work style reforms
  • Strengthened sustainable financial base

Business Segments

Packaging Materials Manufacturing

Overview
Provides high-quality corrugated board base paper and kraft paper to the logistics and packaging industries, balancing durability and environmental considerations.
Competitiveness
Abundant material procurement capabilities and quality control systems
Customers
  • Corrugated board manufacturers
  • Food packaging companies
  • Logistics companies
  • Industrial materials manufacturers
Products
  • Corrugated board base paper
  • Kraft paper
  • Heavy-duty bag paper
  • Special packaging paper

Specialty Paper Processing and Sales

Overview
Develops and supplies specialty paper optimal for corporate security enhancement and high-quality printing.
Competitiveness
Advanced papermaking technology and responsiveness to niche markets
Customers
  • Financial institutions
  • Printing companies
  • Corporate customers
  • Security-related companies
Products
  • Anti-counterfeit paper
  • Special information paper
  • Fancy paper

Household Sanitary Paper Wholesale

Overview
Establishes a stable supply system in the household sanitary paper field and sells widely.
Competitiveness
Utilization of domestic materials and stable supply capabilities
Customers
  • Major trading companies
  • Wholesalers
  • Retail chains
Products
  • Tissue paper
  • Toilet paper
  • Paper towels

Environment and Eco Materials Business

Overview
Develops and supplies eco-materials that promote sustainable resource utilization.
Competitiveness
Integrated production system utilizing company-owned forests
Customers
  • Environmental companies
  • Recycled paper users
  • Green procurement organizations
Products
  • Recycled paper materials
  • Biomass paper
  • Low-environmental-impact paper

Competitive Advantage

Strengths

  • High expertise in specialty paper technology
  • Stable raw material procurement from Japan's largest company-owned forest
  • Possession of environmentally friendly in-house power generation facilities
  • Strategic business alliance with Nippon Paper
  • Diverse papermaking product lineup
  • Stable financial base and capital strength
  • Continuous investment in high-quality products
  • Well-equipped production facilities including Shimada Plant
  • Responsiveness to niche markets with distinctive features
  • Contribution to regional revitalization through public-private partnerships
  • Brand recognition in the specialty paper field
  • Development capabilities for high-printability products
  • Long-term resource management strategy
  • Promotion of sustainable manufacturing processes
  • Solid customer base within the industry

Competitive Advantages

  • Strength in specialty application markets such as anti-counterfeit paper
  • Integrated raw material production system utilizing company-owned forests
  • Power cost reduction and environmental response through self-owned power generation facilities
  • Business scale expansion and sales force strengthening through joint venture with Nippon Paper
  • Market risk diversification through diversified product portfolio
  • Flexibility and agility as a mid-sized papermaking company
  • Proprietary development technologies in specialty paper field
  • Enhanced logistics efficiency leveraging strategic location in Shizuoka Prefecture
  • Trust from local community through regionally rooted management
  • Vertically integrated system from manufacturing to sales
  • Introduction of manufacturing technologies pursuing reduced environmental impact
  • Strengthened customer loyalty through dedicated brand development
  • Balanced sales composition across industrial and household fields
  • Ensured product reliability through advanced quality control system
  • Differentiation through advanced processing technologies

Threats

  • Risk of market contraction in domestic manufacturing overall
  • Cost increases due to fluctuations in raw material prices
  • Rising production costs due to strengthened environmental regulations
  • Intensified price competition with competitors
  • Inflow of low-priced products from overseas manufacturers
  • Risk of production facility shutdown due to natural disasters
  • Decreased paper demand due to spread of alternative materials
  • Rising manufacturing costs due to labor shortages
  • Destabilization of demand due to economic fluctuations
  • Decline in competitiveness due to delays in technological innovation
  • Potential operational restrictions from environmental protection activities
  • Delays in adapting to changes in market needs

Innovations

2023: New Whiskey Distillery Establishment

Overview
Newly launching whiskey distillation business utilizing company-owned forest.
Impact
Creation of new revenue sources and contribution to regional revitalization

2022: In-house Power Generation Equipment Renewal Completed

Overview
Improved efficiency and environmental performance through hydroelectric power plant equipment renewal.
Impact
Achieved stable power supply and CO2 emission reductions

2021: Product Diversification through New Material Development

Overview
Developed durable new materials for copy paper and information paper.
Impact
Enhanced competitiveness and acquisition of new customers

2020: Factory Smartization Promotion Project

Overview
Achieved production management efficiency and quality improvement using IoT.
Impact
10% productivity improvement and reduced defect rate

Sustainability

  • Sustainable raw material procurement using company-owned forests
  • CO2 emission reductions through in-house power generation facilities
  • Promotion of recycled raw materials utilization and waste reduction
  • Introduction of manufacturing processes compliant with environmental standards
  • Participation in environmental conservation activities in collaboration with local communities
  • Energy-saving equipment investment and waste heat utilization technology introduction
  • Implementation of environmental education programs
  • Stricter green procurement standards
  • Efficient water resource management
  • Continuous issuance of environmental reports
  • Promotion of plastic-free packaging
  • Expansion of environmentally certified products