Nippon Paper Industries

Nippon Paper suspends Hungarian CMC subsidiary from end-2026

Nippon Paper Industries will suspend operations at its wholly owned Hungarian subsidiary Nippon Paper Chemicals Europe (NPCE) from 31 December 2026, citing a slower-than-expected EV market and intensifying competition. Production of carboxymethylcellulose (CMC) for lithium-ion battery applications will be consolidated at the group's Gotsu plant in Japan. The group expects to book an extraordinary loss of about JPY 5 billion for the year ending 31 March 2027, and has not given a date for resuming Hungarian operations.

Why this mattersSlower EV battery demand growth in Europe is prompting Japanese materials producers to retreat from local capacity built for that market.

• NPCE will suspend operations on 31 December 2026.
• Nippon Paper expects an extraordinary loss of about JPY 5 billion for the year ending 31 March 2027.
• NPCE, based in Vacratot, Hungary, had 24 employees as of 31 August 2026.
• NPCE reported revenue of EUR 74,000 and an operating loss of about EUR 5.98 million for the year ended 31 December 2025.
• NPCE was established in September 2022 to produce SUNROSE MAC CMC for lithium-ion batteries; local production began in 2025.
• CMC production will be consolidated at Nippon Paper's Gotsu plant in Japan.

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