Oji Holdings has had a stake in Malaysia since 2012 when it acquired GS Paper & Packaging, a maker of paperboard and corrugated container, and has earmarked growth in the area as one of its main strategies. The company currently has two paperboard mills and six corrugated container mills in Malaysia.
Through the acquisition and capital investment, Oji plans to expand sales of disposable diapers not only in Malaysia but also in Southeast Asia. With a population of more than 600 million people and more than 10 million newborn babies every year, Southeast Asia has been enjoying a high annual GDP growth rate of more than 5%. The disposable diaper market in Southeast Asia is anticipated to grow further in terms of demand and Malaysia is geographically positioned in the heart of this Southeast Asian market.
Elsewhere in the region, Oji formed a joint venture agreement in April 2014 with PT Indofood CBP Sukses Makmur to manufacture and market disposable diapers in Indonesia.