Profits of misfortune

Article Abstract:

Three Japanese non-pharmaceutical companies, Nippon Mining Company Ltd, Sanyo-Kokusaku Pulp Company Ltd and Morinaga Milk Industry Company Ltd, have gone into AIDS research. Analysts say the move could be a technique to attract interest in the companies and improve share prices to alleviate lagging earnings. The view stems from the fact that only a few pharmaceutical companies engage in AIDS research and non-pharmaceuticals allocate only a small budget for such research. But despite this low funding some important AIDS-related products have been produced.

author: Friedland, Jonathan
NONMETALLIC MINERALS, EXCEPT FUELS, Fluid milk, Research, Mining industry, Dairy industry, Dairy products industry, AIDS (Disease), AIDS research, Nippon Mining Company Ltd., Sanyo-Kokusaku Pulp Company Ltd., Morinaga Milk Industry Company Ltd.

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Risks on paper

Article Abstract:

Indonesian President Suharto has virtually approved financing for Barito Pacific Timber Group's Tanjung Enim Lestari project despite a limit on foreign borrowings. Suharto directed government ministers to help expedite financing for the 500,000 hectare industrial-tree estate which would supply wood to the pulp facility. Barito's financial advisers are also setting up a US$800 million financing package for the project's initial pulping line. The project, which may cost around US$2.5 billion, is expected to be completed by 2000.

author: Schwarz, Adam, Friedland, Jonathan
Pulp mills, Planning, Paper mills, Project finance, Barito Pacific Timber Group

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Writing on the wall

Article Abstract:

The pulp and paper industry in Japan is beset by problems affecting other industries in the country, including huge overcapacity, high costs, stretched balance sheets and weak demand. It's outlook remains old-fashioned and now it is pressured to cope with the crisis it is facing. This state is an indication of the increasing limitations of the country's once-impressive industrial strategy, with the Ministry for International Trade and Industry no longer able to intervene.

author: Friedland, Jonathan
Industry Overview, Japan

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subjects list: Paper industry, Finance
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