Nippon Paper Industries pursues asset sales as debt load draws scrutiny

Nippon Paper Industries held JPY 842.2bn (USD 5.37bn) of interest-bearing debt at end June 2026, a level flagged as a financial health concern, with a net debt to equity ratio of 1.2x. The group is pursuing asset sales and exits from unprofitable businesses to reduce leverage, compounded by earthquake damage and the halted US Nippon Dynawave Packaging plant following a fatal May 2026 chemical tank collapse.

Why this mattersA core paperboard producer's forced asset sales and business exits could reshape supply and ownership across its packaging and forestry portfolio.

• Interest-bearing debt stood at JPY 842.2bn (USD 5.37bn) as of end June 2026.
• Net debt to equity ratio was 1.2x versus own capital and 1.74x versus shareholders' capital as of end March 2026.
• The company is pursuing asset sales and exit from unprofitable businesses as part of restructuring.
• US subsidiary Nippon Dynawave Packaging's paperboard plant has been halted since a chemical tank collapse in May 2026 that killed 11 and injured 8.
• The group has also been affected by earthquake damage.

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