Tokyo, Japan  02 September 2013 -- Nippon Paper Industries Co., Ltd. (President: Yoshio Haga; “Nippon Paper Industries”) has signed a Memorandum of Understanding with SCG Paper Public Company Limited (President: Roongrote Rangsiyopash; “SCG Paper”) to form a strategic joint venture to collaboratively enhance the competitiveness of SCG Paper’s Fibrous Chain, thereby creating further business opportunities and accelerating the business growth in Southeast Asia.

Nippon Paper Industries will invest in SCG Paper’s Fibrous Chain, resulting in Nippon Paper Industries’ stake of approximately 30% in the joint venture. Subject to the terms and conditions to be agreed upon in the joint venture agreement, the transaction is expected to conclude within the 1Q (April-June) of FY2014.

While enhancing the profitability of our ongoing paper business, Nippon Paper Industries will transform its business structure by allocating the managerial resources into growing business fields such as package and paper processing, lumber and chemicals, and energy. The partnership between Nippon Paper Industries and SCG Paper will create an effective synergistic platform for further business expansion and will lead to sustainable growth of Nippon Paper Group.

SCG Paper’s Fibrous Chain is comprised of forestry, pulp (470,000 tons per year), and printing & writing paper (570,000 tons per year). Revenues from the Fibrous Chain in FY2012 amounted to approximately 17 billion Baht, equivalent to 30% of SCG Paper’s consolidated revenues.