Marusumi Paper Co., Ltd. has filed for civil rehabilitation under Japanese law on February 28, 2025, signaling its struggle amid significant industry challenges. The company, based in Shikoku Chuo City, Ehime Prefecture, is burdened with approximately 590 billion yen in debts, marking one of the most significant bankruptcy filings in Japan's paper industry.
Founded over 100 years ago, Marusumi Paper started its operations in 1919, originally producing hand-made washi paper. Over time, it expanded to include various paper types, especially newsprint and other publishing materials. This company was once celebrated as one of the leading paper manufacturers, maintaining two large factories within its hometown and serving as the backbone of local industry.
Despite its rich history, the company has faced declining revenues over recent years. The shift toward digital media consumption, including e-books and online news outlets, has contributed to falling demand for traditional paper goods. Industry reports indicate Marusumi Paper encountered losses amounting to about 117 billion yen for the fiscal year ending November 2022, followed by another significant loss reaching around 150 billion yen for the subsequent year. "The demand for traditional print media has drastically declined, which has severely impacted our business model," explained Takayuki Hoshikawa, the representative of Marusumi Paper.
Marusumi Paper's efforts to adapt included diversifying its production lines to include hygiene products such as paper towels and wet wipes, aiming to cater to changing consumer needs. The company’s strategy appeared promising at first, highlighted by major investments, including about 9 billion yen on new machinery for its Okawa factory, focused on producing sanitary paper products. Despite these investments, the impact of rapid economic changes, including spikes in raw material and energy prices, complicated their financial situation.
Reports leading up to the filing indicated heightened scrutiny over Marusumi's business decisions, particularly concerning its plans to exit the newsprint market. This retrenchment away from its core operations has raised alarm among industry analysts and stakeholders, addressing potential long-term viability issues.
"We are taking this step to reorganize and seek financial stability after several attempts at restructuring failed to yield results," Hoshikawa elaborated, reflecting on the company's position. This sentiment is not unique to Marusumi Paper; many companies within the traditional printing industry face universal challenges from the accelerating digital transition.
Marusumi Paper's bankruptcy filing is not just about the fate of one company, but it encapsulates the larger narrative surrounding the future of the paper-producing sector. Faced with the realities of dwindling demand, rising operation costs, and emergent market trends, the company’s path forward appears uncertain as it embarks on this legal rehabilitation process.
Three companies affiliated with Marusumi, including Marusumi Line Co., Ltd. and Marusumi Engineering Co., Ltd., have also filed for civil rehabilitation on the same day, highlighting the widespread impact of financial strain originating from similar market pressures.
This event serves as a stark reminder of the sweeping changes impacting traditional industries and calls for reflective thought on how to adapt to these rapidly changing business environments. Stakeholders eagerly await the outcomes of Marusumi’s restructuring plan, pondering what new strategies will emerge from this historical company’s legal challenges.