Daio Paper launches medium-term business plan

Daio Paper launched a fourth medium-term business plan with the slogan Gear UP, The Next Growth Stage to a New Future. The basic policies of the plan are to build a strong and resilient business portfolio; improve financial strength and respond to climate change by achieving carbon neutral status by 2050.

Daio will aim to build an even better competitive advantage in the pulp and paper sector by capitalizing on the results of strategic investments and structural reforms. Meanwhile, in its household and personal care (HPC) business, Daio plans aggressive overseas expansion of its existing hygiene business.

By 2023, Daio expects its HPC sales to exceed P&P category sales for the first time through product development attracting new customers, improving supply capacity and multi-category expansion leveraging the strength of the Ellerair brand. In addition, Daio will accelerate its overseas business. Steps here include entering China’s feminine hygiene market and increasing sales of household paper and adult diapers and improving its product line, especially in the baby diaper market, in Brazil.

Daio is also committed to entering new markets by expanding its multi-category business expansion model in Japan into other markets and accelerating growth through mergers and acquisitions.

In June 2020, daio acquired companies in Turkey and Brazil. Özen Kişisel Bakım Ürünleri Üretim A.Ş. (Özen), now known as Elleiar International, included a plant near Istanbul, Turkey. Santher – Fábrica de Papel Santa Therezinha SA, is a manufacturer of personal care products in Brazil, and now operates as an indirectly owned subsidiary of Daio. As part of its overseas expansion plan, Daio will use these bases to expand its reach into neighboring countries in the Middle East and Central America. The company also plans to expand its business in China by embarking on a large-scale entry into China’s third-tier cities.

These efforts are aimed at increasing sales in Central and South America from 22.6 billion yen to 37 billion yen and in the MENA region, its sales in Russia from 1.9 billion yen to 8 billion. yen, its sales in East Asia from 31.7 billion yen to 6 billion yen. 2 billion yen and Southeast Asia from 6.4 billion yen to 14 billion yen by 2023.

Meanwhile, in China, Daio is expanding the distribution of its super premium diapers to third-tier cities, which account for 80% of the market. Super premium diapers have steadily increased their share of Daio’s diaper sales, from 1% of sales to 26% since 2014.

Daio completed work on a second Chinese factory in September 2020 and added wet wipes machines in March 2021. Next year the company plans to add a feminine care production line and start localized production in China.