Rengo

Basic Information

Stock Code
3941
Industry
Pulp and Paper
Category Detail
Paper & Paper Products
Prefecture
Osaka Prefecture
Establishment Year
May 1920
Listing Year
May 1949
Official Website
https://www.rengo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Tokushu Tokai Paper, Oji HD, Nippon Paper, Daio Paper, Okayama Paper, Furubayashi Paper, Tomoku, DynaPac, The Pack, Omura Paper

Overview

Rengo was founded in 1920 and is Japan's largest manufacturer of corrugated board, paperboard, and paper packaging materials, with an integrated production system from base paper to packaging.

Current Situation

Rengo achieved consolidated net sales of approximately 900.7 billion yen, operating income of approximately 48.8 billion yen, and net income of approximately 34.1 billion yen for the fiscal year ending March 2024. As the domestic leader, it holds a high market share in the corrugated board and paperboard sectors and manufactures a wide range of packaging materials from paperboard to corrugated board, paper containers, and flexible packaging products. In technological innovation, it focuses on developing new materials and applications such as Delta Flute and flame-retardant corrugated board, accelerating global expansion across 54 factories and 8 bases worldwide. Environmentally, it promotes sustainable packaging materials through solar power generation and corrugated board lightweighting. It enhances profitability through proactive equipment reorganization and industry reforms while flexibly responding to changes in domestic and international demand. In 2024, it commenced operations at a new factory in Ehime, strengthening logistics efficiency. In the medium to long term, it positions overseas business expansion and environmental initiatives as strategic pillars, aiming for growth as an industry leader.

Trivia

Interesting Facts

  • Developed the world's first continuous corrugated board production equipment
  • Founder Teijirō Inoue coined the term 'corrugated board'
  • Operates 54 factories domestically and internationally, establishing position as domestic leader
  • Company emblem stylized from founding characters and inherited
  • Management philosophy 'Kintoma' deeply rooted as business iron rule
  • Active in special applications like flame-retardant corrugated board and air conditioning ducts
  • Opened factory in 2010 covered by solar power for daytime electricity
  • After 2011 earthquake destroyed Sendai factory, quickly built new one in Fukushima
  • Overseas expansion intensified since 1990s across wide range of countries
  • Consolidated net sales exceeding 900 billion yen in capital scale
  • Approximately 23,000 consolidated employees
  • Industry leader promoting recycling of environmentally friendly materials
  • Leads platform construction reforms in response to intensifying industry competition
  • Has numerous subsidiaries including Toyotsu New Pack
  • Member of Japan Global Compact

Hidden Connections

  • Influential in providing packaging materials to many major domestic food manufacturers
  • Joint investments and collaborations with competitors like Nippon Paper and Oji HD
  • Close collaboration with major logistics companies in the supply chain
  • Influences industry association policy formation as long-time industry leader
  • Industry-leading expertise in environmental material development amid strengthening regulations
  • Active social contributions to earthquake recovery and local employment protection
  • Technological innovations in paper packaging contribute to creating new application markets
  • Successful overseas expansion by establishing manufacturing bases in multiple countries adapted to local needs

Future Outlook

Growth Drivers

  • Increasing demand for packaging materials domestically and internationally
  • New material development and product diversification
  • Recycling promotion through environmental regulation compliance
  • Expansion of global logistics networks
  • High-functionalization of domestic corrugated board industry
  • Packaging demand expansion from e-commerce market growth
  • Production efficiency improvements through automation and digitalization
  • Strengthened expansion in emerging markets
  • Increasing demand for eco-packaging due to rising environmental awareness
  • Strengthened corporate sustainability management

Strategic Goals

  • 50% reduction in environmental impact from corrugated board and packaging materials
  • Achieve overseas sales ratio of over 40%
  • Sustainable products sales ratio over 70%
  • 30% production efficiency improvement through digitalization
  • Build sustainable supply chains
  • Annual sales expansion of 30 billion yen through new applications
  • Achieve 60% renewable energy ratio including solar power
  • 40% reduction in CO2 emissions from corrugated board manufacturing
  • Continuous growth through improved customer satisfaction
  • Strengthen human resource development and diversity promotion

Business Segments

Corrugated Board Manufacturing

Overview
Provides corrugated board products to a wide range of industries, supporting logistics efficiency.
Competitiveness
Integrated production technology from base paper to boxes
Customers
  • Logistics companies
  • Food manufacturers
  • Electronics manufacturers
  • Retailers
  • Manufacturers
Products
  • Corrugated board cases
  • Shipping packaging materials
  • Custom packages

Paperboard Manufacturing

Overview
Manufactures high-quality paperboard products and supplies materials for corrugated board, etc.
Competitiveness
Development of high-durability, environmentally friendly materials
Customers
  • Paper processors
  • Corrugated board manufacturers
  • Packaging material manufacturers
Products
  • Base paper for corrugated board
  • Paperboard for printing

Paper Container Manufacturing

Overview
Manufactures high-quality paper containers to meet diverse packaging needs.
Competitiveness
Advanced design processing technology
Customers
  • Cosmetics manufacturers
  • Food manufacturers
  • Retailers
Products
  • Paper packaging boxes
  • Specially processed paper containers

Flexible Packaging and Heavy Packaging Business

Overview
Provides functional flexible packaging products and heavy packaging materials.
Competitiveness
Industry-specific packing solutions
Customers
  • Food manufacturers
  • Pharmaceutical manufacturers
  • Industrial goods manufacturers
Products
  • Flexible packaging films
  • Heavy-duty bags

Logistics Services

Overview
Builds a logistics system to support stable product supply.
Competitiveness
Efficient logistics through group collaboration
Customers
  • Group affiliates
  • External logistics companies
Products
  • Logistics management
  • Delivery services

R&D and Technical Services

Overview
Promotes research and development of new materials and technologies.
Competitiveness
Industry-leading technological development capabilities
Customers
  • Internal business divisions
  • External industry partners
Products
  • Material development
  • Packaging design

Environmental Solutions

Overview
Provides environmentally friendly solutions to promote sustainability.
Competitiveness
Manufacturing of 100% recyclable packaging materials
Customers
  • Local governments
  • Corporate customers
  • Recycling companies
Products
  • Recyclable packaging materials
  • Technologies to reduce environmental impact

Overseas Business

Overview
Advances overseas expansion at bases in China, Thailand, the US, and elsewhere.
Competitiveness
Local production systems tailored to each country's needs
Customers
  • Local manufacturers
  • Importers and exporters
Products
  • Corrugated board manufacturing
  • Packaging material sales

Competitive Advantage

Strengths

  • High manufacturing efficiency from integrated production system
  • Largest domestic share in corrugated board and paperboard
  • Diverse packaging material manufacturing technologies
  • Advanced environmentally friendly technologies
  • Comprehensive domestic and international production bases
  • Strong customer base
  • Active R&D promotion
  • Wide product lineup
  • High quality control capabilities
  • Long history and reliability
  • Strong corporate brand
  • Stable financial foundation
  • Collaboration with government and industry associations
  • Advanced logistics systems
  • Overseas market expansion capabilities

Competitive Advantages

  • Complete integrated production from base paper to packaging for cost reduction and quality maintenance
  • Product differentiation through proprietary technologies like Delta Flute
  • Supply strength from the largest domestic production network
  • Response capabilities in diverse niche areas like flame-retardant corrugated board
  • Strengthened global expansion with 54 factories and 8 bases overseas
  • Response to market sustainability needs with environmental impact reduction technologies
  • Efficient production system established through consolidations
  • Risk diversification through multifaceted product development
  • Long-term investments enabled by solid financial management
  • Strong transaction relationships with major customers
  • Partnerships across a wide range of industries
  • Provision of advanced packaging design technologies
  • Promotion of industry reforms aligned with the times
  • Technological innovation through R&D centers
  • Capabilities to meet diverse customer requirements

Threats

  • Risk of rising raw material prices
  • Slowing growth in the domestic corrugated board market
  • Emergence of overseas competitors
  • Burden of strengthened environmental regulations
  • Cost increases from rising logistics expenses
  • Profit impacts from exchange rate fluctuations
  • Production base risks from natural disasters
  • Rapid changes in market needs
  • Decline in paper demand due to digitalization
  • Declining productivity from labor shortages
  • Trade friction and political risks
  • Intensifying technological innovation competition

Innovations

2024: Ehime Toon Factory commences operations

Overview
Relocated from Matsuyama Factory, the state-of-the-art energy-saving Ehime Toon Factory begins operations.
Impact
Contributes to improved production efficiency and logistics cost reductions

2023: Enhanced Delta Flute Corrugated Board development

Overview
Promotes expanded applications for lightweight, high-strength Delta Flute corrugated board.
Impact
Realizes customer cost reductions and lower environmental impact

2022: Market expansion of flame-retardant corrugated board 'RAFEP'

Overview
Expands sales of flame-retardant corrugated board using special materials.
Impact
Acquires new customers through enhanced safety

2021: Business strengthening through subsidiary acquisition of Daiko Paper

Overview
Strengthens papermaking business base by becoming support sponsor and wholly-owned subsidiary of Daiko Paper.
Impact
Secures stable raw materials and enhances product development capabilities

2020: Strengthened development of new corrugated board applications

Overview
Develops and begins sales of corrugated board air conditioning ducts and special packaging materials.
Impact
Meets diverse market needs and expands product range

Sustainability

  • Factory power supply via solar power generation
  • CO2 reductions during transportation through corrugated board lightweighting
  • Development of 100% recyclable packaging materials
  • Promotion of manufacturing processes to reduce environmental impact
  • Stricter green procurement policies
  • Expansion of eco-label certified products
  • Implementation of supply chain environmental audits
  • Introduction of factory wastewater reuse systems
  • Enhanced environmental education for employees
  • Promotion of recycling to reduce waste
  • Continuous improvement of environmental management systems
  • Active participation in local environmental protection activities