Daio Paper announced it has acquired all shares of Daiki Co. Ltd., a company manufacturing pet care products. 

In the “Daio Group Sustainability Vision” announced in May 2021, the group established a purpose of achieving the “Three Lives,” namely, hygiene, life, and regeneration, and realizing an “Abundant and Affable Future for the World.” With an aim to contribute to the “Regeneration of the Earth” as stated in the Vision, Daio is working to solve social issues through our business activities. Such activities include a launching of a joint study on recycling of used disposable diapers in June 2022. Daio believes that, with this share acquisition, it will not only be able to establish a material recycling model within its group but also concurrently realize the further strengthening of the revenue base of the Home & Personal Care business.

Founded in 1984, Daiki is an OEM manufacturer and distributor of paper pellets cat litter used for cat excretion. It supplies approximately 40% of the paper pellets cat litter market in Japan through major domestic pet care product manufacturers. It manufactures high-quality paper pellet cat litter by utilizing recycled raw materials such as diapers, wallpaper and pulp-based nonwoven fabrics that are below the standard of manufacturers. It has two production facilities in Japan, with products supplied promptly to eastern Japan from the Mooka production site in Tochigi Prefecture and to western Japan from the Shikoku production site in Kagawa Prefecture. Leveraging the know-how and patents obtained from years of experience, it has strength in developing the products that meet increasingly sophisticated and diverse needs, as well as in cost competitiveness.

While most of the production losses generated in the manufacturing process of sanitary paper, disposable diapers, sanitary products and surgical masks that Daio manufactures and sells have been returned to raw material processes for commercialization, those that cannot be reused have been sold as raw materials for recycling or used as fuel for its own boilers. With the share acquisition, Daio will be able to recycle such production losses within the group, leading to establish material-recycling, which will enable it to strengthen the revenue and profit of the business through manufacturing and selling paper pellets cat litter to pet care product manufacturers.

Furthermore, along with the contribution to the achievement of SDGs and realization of sustainable recycling society, Daio also aims to utilize pulp and polymers separated and recovered from its recycling business of used disposable diapers for paper pellets cat litter production.