TOKYO(May27,2002)--In
October 2001, at Vung Ang in Ha Tinh Province in central Vietnam,
Nissho Iwai Corporation established Vietnam-Japan Chip Vung
Ang Corporation (VIJACHIP VA), a joint venture to process
and sell plantation wood chip, and will commence operations
in June.
VIJACHIP VA has a capital of US$1.5 million (approx. 190 million
yen), with Nissho Iwai making a 60% investment, and the Vietnam
Forest Corporation (Vinafor), the largest state-owned company
in Vietnam to handle forest products, making a 40% investment.
The company's annual processing capacity is 300,000 tons,
and expected sales are $12 million (approx. 1,500 million
yen). VIJACHIP VA will export plantation wood chip to Japan,
providing its total output to Oji Paper Co., Ltd.
Wood chip purchases by paper manufacturers are shifting from
native wood to plantation wood, owing to environmental concerns
such as the protection of forest resources and the prevention
of global warming. The plantation wood chip processing business
in Vietnam is following in the wake of such trend. The major
raw woods, eucalyptus and acacia, will be grown as plantation
wood in Ha Tinh Province and Quang Binh Province.
Nissho Iwai's forestry and wood chip production businesses
in Vietnam began with Vietnam-Japan Chip Corporation, which
was established in Danang City in Quang Nam Province in 1993.
In 1995, Nissho Iwai established Quy Nhon Plantation Forest
Co. of Vietnam Ltd. (QPFL) in Binh Dinh Province, together
with Oji Paper Co., Ltd. and Dai Nippon Printing Co., Ltd.
VIJACHIP VA is the company's third forestry and wood chip
production business in Vietnam.
In addition to
projects in Vietnam, Nissho Iwai participates in two joint
projects with Oji Paper in Victoria, Australia as overseas
forestry and wood chip production businesses. Nissho Iwai
has already implemented afforestation plans covering 25,800
ha, against the targeted afforestation area of 43,000 for
a total of five projects that are being carried out in Vietnam
and Australia.
Nissho Iwai, which
is currently executing its "Mid-term Management Plan 2005",
cites environmental business as one of the new business developments.
The company will aggressively develop environmentally conscious
papermaking material businesses, and plans to import a total
of 1,200,000 tons of wood chip; 800,000 tons a year from Vietnam
in 2003, and 400,000 tons a year from Australia from the year
2009. From now on, Nissho Iwai will expand its papermaking
material business focusing on plantation wood in Malaysia
and Thailand.
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