Mitsubishi Corporation

Press Room

August 3, 2015
Daio Paper Corporation
Mitsubishi Corporation

Manufacturing and Sales Joint Ventures of Baby Diapers in Indonesia

Daio Paper Corporation (Daio Paper) and Mitsubishi Corporation (MC) are pleased to announce today that they have reached a shareholders’ agreement to establish two joint ventures for the wholly owned subsidiaries of Daio Paper Group in the Republic of Indonesia, "Elleair International Trading Indonesia"  (EITI) and "Elleair International Manufacturing Indonesia " (EIMI).
The outstanding shares of EITI and EIMI held by Daio Paper will be transferred to MC and a third-party allocation of new shares of both companies will be transferred to MC in November of this year. Upon completion, MC will hold 40% stock of EITI and EIMI while Daio Paper will hold 60% shares of each company.
In Indonesia, demand for disposable diapers is expected to grow in line with the improvement of living standards and rising birth rate. Daio Paper established sales company EITI in March, 2013 and EITI started the import and sales from Thailand's production base to promote the brand "GOO.N" and to expand sales volume.
Daio Paper established production company EIMI in November 2014 to provide a stable supply and to reduce costs through local production. A factory is currently under construction and expected to start operations within this year.
Daio Paper has disposable diaper manufacturing technology and development capabilities to compete abroad. Experience in sales and marketing activities in Thailand and China and import and sales activities in Indonesia during the past two years will provide added strengths.
MC is involved in various food manufacturing, distribution and logistics businesses in Indonesia under an alliance with the Alfa Group, who are a leading retail chain with over 10,000 outlets in the country. Daio Paper and MC will make a full scale entry into the Indonesian market offering disposable baby diapers of Japanese quality through various trade channels including the Alfa Group as well as through traditional trade channels. Through these joint ventures, the companies will improve consumer choice in Indonesia and contribute to the local community through job creation.
In the future, we are eyeing exports from Indonesia and expansion of other product categories such as adults diapers, sanitary napkins, wet wipes, sanitary paper, etc.
Information about Partner Companies
(1) PT. Elleair International Trading Indonesia
  ① Business Activities:          Import and sale of diapers
  ② Headquarters:                 Jakarta Capital Special Province
  ③ Capital:                            IDR 493 billion (Approx. JPY 4.7 billion) ※
     (After The Joint Venture)  IDR 573 billion (Approx. JPY 5.5 billion) ※
  ④ Shareholders:                 Daio Paper Group 100%
     (After The Joint Venture)  Daio Paper 60%: MC 40%
  ⑤ Establishment Date         March 25, 2013
(2) PT. Elleair International Manufacturing Indonesia
  ① Business Activities:          Production of diapers
  ② Headquarters:                 Bekasi International Industrial Estate, Bekasi, West Java
  ③ Capital:                           IDR 415 billion (Approx. JPY 4 billion) ※
     (After The Joint Venture)  IDR 532 billion (Approx. JPY 5.1 billion) ※
  ④ Shareholders:                  Daio Paper Group 100%
     (After The Joint Venture)  Daio Paper 60%: MC 40%
  ⑤ Establishment Date:        November 27, 2014
  ⑥ Site Area:                        Approx. 39,000m2
  ⑦ Operation Scheduled:     December 2015 (scheduled)
                                                                                                       ※calculated in JPY per IDR= 0.0096.
(3) Daio Paper Corporation
  ① Business Activities:        Manufacturing,  processing, buying and selling of paper and pulp. Manufacturing, processing, selling of miscellaneous goods
  ② Headquarters:               2-7-2 Yaesu, Tokyo, Japan
  ③ Capital:                          JPY 40 billion
  ④ Representative:             Masayoshi Sako
  ⑤ Year Established:         1943
  ⑥ No. of Employees:         8,174 (consolidated, as of March 2015)
(4) Mitsubishi Corporation
  ① Business Activities:        A global integrated business enterprise that develops and operates businesses across virtually every industry including industrial
                                            finance, energy, metals, machinery, chemicals, living essentials, and environmental business
  ② Headquarters:               2-3-1 Marunouchi, Tokyo, Japan
  ③ Capital:                         JPY 204 billion
  ④ Representative:             Ken Kobayashi
  ⑤ Year Established:         1950
  ⑥ No. of Employees:         71,994 (consolidated, as of March 2015)

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