Nippon Paper Closes its Largest Transaction Outside Japan

SEATTLE (Scrap Monster):  Japanese pulp and paper giant Nippon Paper Group announced that it has completed the acquisition of Orora Limited’s paperboard and fibre-based packaging business in Australia and New Zealand. The agreement to purchase the assets was signed during the month of October last year.

The assets were acquired by Paper Australia Pty Ltd.- a wholly owned subsidiary of Nippon Paper Industries. The existing business along with the newly acquired subsidiaries will form a new business group named Opal. Also, Opal’s unique business model will expand the packaging solution business from upstream to downstream services, catering to a wide range of customers in Oceania region as well as the global market.

ALSO READ: Nippon Paper Concludes Acquisition of Weyerhaeuser's Liquid Packaging Board Business

Opal is expected to lead the packaging segment of Nippon’s business portfolio, with anticipated sales of around AUD 2,066 million. The financial impacts from the acquisition on the company’s financial results for the fiscal year ending March 2021 will be declared soon. The company press release noted that Mr. Masanobu Iizuka will be appointed as the CEO of Opal effective June 25, 2020.

The acquisition is Nippon Paper’s largest transaction outside of Japan. Furthermore, it marks the company’s entry into the integrated corrugated paperboard manufacturing business in the Oceania region.