Okayama Seishi

Basic Information

Stock Code
3892
Industry
Pulp and Paper
Category Detail
Paper & Paper Products
Prefecture
Okayama Prefecture
Establishment Year
February 1907
Listing Year
December 2000
Official Website
http://www.okayamaseishi.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Tokushu Tokai Paper, Oji Holdings, Rengo, Furubayashi Paper, Tomoku, Dyna Pack, The Pack, Omura Paper, Otake, Kotsu Sangyo

Overview

Okayama Seishi is a mid-sized company in the pulp and paper industry founded in 1907. As a member of the Oji Paper Group, it primarily manufactures and sells corrugated medium, paper tube base paper, and decorative corrugated board.

Current Situation

Okayama Seishi recorded standalone net sales of approximately 10.9 billion yen and operating profit of approximately 600 million yen for the fiscal year ended May 2023, maintaining a solid financial foundation. Its mainstay products are corrugated medium and decorative corrugated boxes such as fruit gift boxes, and as an affiliate of Oji Paper, it has established a stable transaction base. Although mid-sized in the paper and paper products industry, it specializes in supplying cardboard and paper tube base paper, focusing on improving manufacturing technology. In recent years, it has worked on enhancing production efficiency and quality control, as well as promoting energy conservation and reducing environmental impact. In terms of sustainability, it is actively engaged in resource recycling and waste reduction activities, and collaborates closely with local communities. In the medium to long term, it aims to enhance profitability through value-added improvements in decorative corrugated board, in addition to maintaining stability in the domestic market. Leveraging the management resources of the Oji Paper Group while maintaining competitiveness through distinctive product development. Moving forward, it plans to pursue productivity improvements through expanded environmentally friendly products and digitalization initiatives.

Trivia

Interesting Facts

  • Established in 1907, a long-standing paper manufacturing company.
  • Key core company in the Oji Paper Group.
  • Possesses advanced manufacturing technology for decorative corrugated board.
  • Head office and factory located in Minami Ward, Okayama City.
  • Products highly regarded for fruit packaging.
  • Maintains stable quality through long-term technology accumulation.
  • Has introduced energy-efficient equipment.
  • Serves as a foundation for local industry.
  • Pioneering environmental considerations in the paper industry.
  • Has formed a unique market niche within the industry.

Hidden Connections

  • Receives stable supply and technical support through capital tie-up with Oji Paper.
  • Closely collaborates with local fruit farming industry on decorative corrugated board for fruit.
  • Actively participates in local manufacturing networks for technology exchange.
  • Collaborates with environmental NGOs and local groups on conservation activities.
  • Foreign investors such as Interactive Brokers are listed as shareholders.
  • Has long contributed to local job creation.
  • Developed proprietary technology to improve durability in paper tube base paper.
  • Leading example in digitalization efforts within the manufacturing industry.

Future Outlook

Growth Drivers

  • Expanding demand for environmentally friendly packaging materials
  • Market growth in high value-added decorative corrugated board
  • Strengthened collaboration with Oji Paper Group
  • Efficiency gains from production automation and digitalization
  • Social demand for sustainable resource use
  • Increased packaging demand accompanying expansion of domestic logistics and e-commerce markets
  • Advances in recycled raw material utilization technology
  • Promotion of collaboration with regional SMEs

Strategic Goals

  • Achieve 50% sales ratio for decorative corrugated board
  • Realize carbon neutrality at own factories
  • Secure over 70% recycled raw material usage rate
  • Improve production efficiency by 20% through DX
  • Exceed 15 billion yen in sales through new customer acquisition

Business Segments

Corrugated Base Paper Manufacturing

Overview
Provides corrugated and packaging medium base paper and decorative corrugated board.
Competitiveness
Stable supply system through collaboration with Oji Paper
Customers
  • Corrugated manufacturers
  • Packaging material trading companies
  • Logistics companies
  • Large retailers
Products
  • Corrugated medium base paper
  • Decorative corrugated board
  • Cardboard

Paper Tube Base Paper Supply

Overview
Supplies raw materials for paper tubes to meet diverse applications.
Competitiveness
Technology balancing durability and environmental consideration
Customers
  • Paper tube manufacturers
  • Packaging manufacturers
  • Industrial material manufacturers
Products
  • Paper tube base paper
  • Reinforced paper tubes
  • Recycled paper tube materials

Paper Processing Products

Overview
Provides a wide variety of paper products leveraging processing technology.
Competitiveness
Advanced paper processing technology and short delivery times
Customers
  • Food packaging companies
  • Housing and construction material manufacturers
  • Environmental product companies
Products
  • Paper cushioning materials
  • Paper trays
  • Special processed paper

Logistics Material Sales

Overview
Stably supplies packaging materials for logistics.
Competitiveness
Support for diverse customizations
Customers
  • Logistics companies
  • Manufacturing companies
  • Wholesalers
Products
  • Paper packaging materials
  • Corrugated boxes
  • Delivery packages

Environmental Business

Overview
Promotes sustainable recycling technology.
Competitiveness
Technological strength in promoting resource circulation
Customers
  • Recycling companies
  • Environmental organizations
  • Local governments
Products
  • Recycled raw materials
  • Environmentally friendly paper products

Competitive Advantage

Strengths

  • Stable foundation from Oji Paper Group
  • Manufacturing technology for corrugated medium
  • High value-added product development for decorative corrugated board
  • Stable financial position through prudent management
  • Proactive response to energy conservation and environmental considerations
  • Flexible response to diverse customer needs
  • Deep roots in the local community
  • Supply system for high-quality paper products
  • Building long-term partnerships
  • Stable employee training and technology succession

Competitive Advantages

  • Utilization of Oji Paper Group's sales network
  • High market share in corrugated medium within the industry
  • Differentiated product lineup with decorative corrugated board
  • Leadership through strengthened development of environmentally friendly products
  • High product customization capabilities for customer satisfaction
  • Rapid service provision closely tied to the region
  • Introduction of resource-recycling production systems
  • Reliability through robust quality control
  • Improved cost competitiveness via energy-saving equipment investments
  • Risk diversification through diversified business operations

Threats

  • Risk of fluctuations in raw material prices
  • Stagnation in domestic demand and market contraction
  • Competitors' technological innovations and price competition
  • Cost increases due to stricter environmental regulations
  • Supply risks from international logistics delays
  • Decline in productivity due to labor shortages
  • Impact of natural disasters on production facilities
  • Emergence of alternative materials and packaging technologies
  • Impact of exchange rate fluctuations on import/export costs
  • Changes in consumer awareness regarding sustainability

Innovations

2024: Introduction of Digital Printing for Decorative Corrugated Board

Overview
Introduced high-definition, short-lead-time digital printing for decorative corrugated board.
Impact
Improved customer responsiveness and increased added value

2023: Promotion of Energy-Saving Production Equipment

Overview
Significantly reduced factory power consumption with the latest energy-saving equipment.
Impact
Achieved 10% annual reduction in energy costs

2022: Expansion of Recycled Material Usage in Raw Materials

Overview
Increased the ratio of recycled raw materials to strengthen sustainability.
Impact
Reduced environmental impact and improved cost competitiveness

2021: Enhancement of Production Process Automation

Overview
Improved production efficiency through AI-based quality control and automation technology.
Impact
Reduced defect rates and shortened delivery times

Sustainability

  • Active promotion of recycled paper raw materials
  • Waste reduction in manufacturing processes
  • Introduction of energy-saving equipment
  • Product design improvements to reduce environmental impact
  • Strengthened participation in local environmental conservation activities
  • Setting targets for greenhouse gas emission reductions
  • Implementation of environmental education programs for employees
  • Formulation of sustainable resource procurement policies
  • Increase in eco-labeled products
  • Greenery preservation activities around factories