Daio Paper Corporation and Hokuetsu Corporation have begun concrete discussions toward forming a strategic business alliance to resolve management issues faced by both companies and to further enhance their corporate value amid the severe business environment surrounding the pulp and paper industry. 
 
Daio Paper and Hokuetsu are both Japan-based paper manufacturers. Rather than each company taking measures individually to address issues like domestic logistics and social issues, the companies agreed it would produce more rapid effects if both companies join hands in reforming the structure and bolstering the revenue base. Through the Business Alliance, the two companies will maintain their independence and healthy competitive relationship while proactively considering initiatives that will contribute to the medium- to long-term enhancement of their respective corporate value, such as complementing each other by leveraging their respective strengths. 
 
Daio Paper and Hokuetsu have collaborated on ways to improve the relationship between the two companies. In September 2023, the companies signed a confidentiality agreement and have conducted a series of preliminary studies and discussions at the subcommittee level on such initiatives as production technology, raw material purchasing and products logistics. The two companies will hold discussions with the aim of signing an agreement on the Business Alliance around May.