Oji Holdings Corporation would like to announce that a Memorandum of Understanding (MoU) for strategic alliance in the sales of sanitary products such as disposable diapers (adult use, baby use), etc. in People's Republic of China has been signed with Nichii Gakkan Company (hereinafter “Nichii Gakkan”),
1. Approaches for the Disposable Diapers Business
As one of the major policies for growth strategies to strive towards the realization of an innovative value-creating company, our company has announced the further expansion of overseas business, and has positioned the disposable diapers business as a priority business field. We have also established the Personal Care Innovation Center (PCIC) in October of year 2013, which plays the role of integrating marketing and product development, and we are pushing ahead with not only the restructuring of domestic disposable diapers business, but also the establishment of the foundation for overseas expansion.
In April of this year, we decided to start the business of manufacturing and sales of disposable diapers in the Republic of Indonesia , and we signed a Joint Venture Agreement with a local company (PT Indofood CBP Sukses Makmur Tbk). Currently, with the aim of further expanding our overseas business, we are carrying out multiple projects, which include consideration of M&A with local manufacturers of disposable diapers.
2. Overview of MoU
Nichii Gakkan signed an agreement for strategic alliance with “China Planning Institute of Aging”, which is an external organization of the Ministry of Civil Affairs of the People’s Republic of China, in July of this year and is pushing forward with the preparations for the development of business in human resource education, human support services (nursing care, child care, etc.), and sales of sanitary products, which is based on the concept of “Three Excellences” (consisting of “excellent human resources”, “excellent services”, and “excellent products”).
With the aim of providing a stable supply of sanitary products such as disposable diapers (adult use, child use) handled by Nichii Gakkan in People’s Republic of China by leveraging our product development capability and production capacity, we have agreed with Nichii Gakkan to proceed with the discussion, striving to start the collaboration from January of next year.
3．Overview of Nichii Gakkan
Company Name: Nichii Gakkan Company
Location: 2-9 Kanda-Surugadai, Chiyoda-ku, Tokyo, Japan
Representative: President and Representative Director Masatoshi Saito
Business Line: Medical support business, Health care business, Education business,
Daily living assistance business
Capital: JPY 11,934million (as of end of March 2014)
Koichi Okumura, Director of the Board,
General Manager of International Trade Division, Oji Management Office Inc.