This article submitted by Carol Keller on 5/10/96.
JEFFERSON SMURFIT CORPORATION GRANTS MANUFACTURING LICENSE FOR PAYLOADtm CORRUGATED PALLET TO JAPAN'S OHMURA PAPER CO.
ST. LOUIS, MO, APRIL 29, 1996 Smurfit Pallet Systems, a division of Jefferson Smurfit Corporation, has granted a manufacturing license for Payload(tm) corrugated pallets to Ohmura Paper Co. Sponsor for Ohmura Paper is Nissho Iwai of Osaka, the sixth largest trading company in Japan and sublicensee for Michael Ng, sub licensor for Smurfit Pallet Systems for Southeast Asia.
Smurfit Pallet Systems, under the trade name Payload , manufactures a broad line of corrugated pallets for material handling systems. The lightweight, yet extremely strong pallets are manufactured from 100 percent recyclable corrugated sheets using patented designs and processes.
"The combined savings of lower shipping costs due to its light weight and elimination of pallet fumigation for export made the Payload(tm) Pallet an attractive choice for us," said Mr. Hideo Ohmura, president of Ohmura Paper Co. "The cost savings we will receive is especially important in Japan where material handling costs are more than three times as expensive than in the United States," Mr. Ohmura added. In addition to selling corrugated pallets, Ohmura Paper Co. will collect the units from end users for reuse and eventual recycling.
"We are extremely pleased that Ohmura Paper Co. will be representing our Payload(tm) Pallet line," said Mark C. Huneke, "Opportunities for our products and services in the Far East as well as around the globe are escalating due to intensifying concerns of infestation and disposability of wood pallets from most importing countries."
According to Mr. Ohmura of Ohmura Paper Co., the annual production of all types of pallets in the Japanese market is approximately 50 million units. He expects corrugated pallets to acquire 1015 percent of the market in the near future.
Smurfit Pallet Systems has two manufacturing facilities in the U.S., one in Crown Point, IN, and another in Rancho Cucamonga, CA. The company also has Payload(tm) Pallet Systems licensees in Southern Indiana, Canada and others in the Far East.
Jefferson Smurfit Group (JSG), a JSC affiliate, has established Smurfit Pallet Systems U.K. and SOCAR in France. JSG also has plans for future manufacturing operations in Latin America and throughout the world.
Jefferson Smurfit Corporation, headquartered in St. Louis, MO, is one of the nation's most broadly based paper, paperboard, and packaging companies. It is also America's #1 collector, marketer, recycler and exporter of waste paper. JSC operates more than 150 mills and converting facilities in the United States, Canada, Mexico, and Puerto Rico, and employs 17,000 people. In 1995, the company had net sales of approximately $4.1 billion. JSC's common stock is traded on The NASDAQ National Market under the symbol JJSC.
Ohmura Paper Co. owns seven corrugated container manufacturing facilities throughout Japan including a recycling paper mill in Shizuoka Pref. # # #
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