Asia’s largest paper manufacturer, Oji Paper, began its operations in Thailand in 1998. After only five short years, Oji Paper Thailand is today a picture of consistent growth -- with sales reaching record highs in 2002.

Today Oji Paper Thailand, a fully owned subsidiary of Oji in Japan, manufactures carbonless paper at its Thai processing mill. “Oji is well-known worldwide,” says Kazuhiko Watanabe, managing director of the subsidiary. “Our long history of over 100 years and reputation for quality has certainly been our prime asset.” “We started just 5 years ago with a total capacity of 30,000 tons a year,” he recalls. “After we reached full capacity in 2001, we spent additional money to enable us to expand. Last year we also established a new company called Oji Label, which makes our new product – adhesive paper – and we expect it to do very well.”

Kazuhiko Watanabe, managing director of Oji Paper in Thailand

Watanabe recognizes that Thailand has the potential to be a highly competitive source of raw material for Oji Paper. Thailand’s geography and climate make the country ideal for planting eucalyptus trees, the species from which the base material of most paper products is made. Watanabe admits that in the future, Oji will need its own base paper. And to ensure the stability of supplies, he makes it a point to work together with the other local players in the industry.

Regular and open discussion with the Thai government is leading to incentives for farmers to expand their eucalyptus plantations. Watanabe believes that his vision is very much in line with the Thai government’s policy to increase farmers’ incomes. He concludes that Thailand’s paper industry is expected to grow and that Oji Paper’s commitment is ensured for the long term.

“We are ready to help transfer technology and educate the farmers on how profitable it can be for them if they grow eucalyptus trees,” he explains. “If we can create that sort of base and expand the area of eucalyptus plantations, then Thailand will be a very interesting location for the global paper industry -- particularly for Oji to invest and grow our business here further.”

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