Nippon Paper's Yatsushiro Mill Damaged in Kumamoto Earthquake, Chimney Collapses Trapping 11

Corporate ActionRegulation Impact 4
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The Yatsushiro Mill of Nippon Paper in Yatsushiro City, Kumamoto Prefecture, which recorded a strong 6 on Japan's seismic intensity scale in the July 28, 2026 earthquake, suffered major damage including a broken and collapsed chimney. According to Kumamoto Prefecture and prefectural police, 11 employees were trapped on the first and second floors of the mill. Four were rescued, but two of them were found in cardiopulmonary arrest, the other two were seriously injured, and the safety of the remaining seven is unknown. The Yatsushiro Mill is Nippon Paper's only mill in Kyushu and one of its main production bases for graphic paper used in publishing, newspapers, and copy paper. However, under its medium-term management plan through fiscal 2030, the company plans to consolidate its graphic paper production bases from the current six to three, and production at the Yatsushiro Mill was expected to end in the near future. Depending on the extent of the damage, this could lead to a decision to bring forward the halt of graphic paper production. Nippon Paper also had a serious accident at its US subsidiary's plant in May this year, where a chemical tank collapse killed 11 people. As of the end of March 2026, its net interest-bearing debt stood at 675.2 billion yen, 1.2 times its equity, leaving little room in its business environment.

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