OjiFS Sustainability Report 2020-21: CEO Statement

2020 was a year of significant challenge. It required all of our people at Oji Fibre Solutions to adopt new ways of working to deliver the essential pulp, paper and packaging products we provide to our customers around the world.

Alongside many others, Oji Fibre Solutions experienced rapidly changing market conditions and our operations were impacted by COVID-19 restrictions.

In New Zealand and Australia, most of our operations were designated as essential and our employees considered essential workers during regulated lockdowns. I am proud of the speed at which our business put in place additional health and safety measures to protect our people and to reduce the risk of the spread of COVID-19.

Many of these additional measures, originally implemented as part of lockdown protocols, such as increased cleaning and contact-tracing, continue to be in place today as part of our safety-first focus.

I am also very proud of how all our people responded to the challenges presented by COVID-19, whether they were working on-site, at home or unable to work during lockdown periods. Everyone has worked hard to protect colleagues, to keep the business operating and to deliver for our customers. As part of our wellbeing programmes, we strived to provide our people with support and connection to the business during this time.

These challenges included our Tasman and Penrose Mills being required to cease production during the New Zealand lockdown in March and April 2020. At other facilities, some of our operators were unable to be on-site due to health vulnerabilities, testing or close-contact self-isolation rules. In addition, border closures meant we were unable to host international technicians for machine installations and during planned maintenance periods.

Nevertheless, in 2020 we overcame many of these challenges and achieved several projects that better position our business to deliver sustainable products and services to our customers.

We adopted new technology to bring the specialist support of international experts to local teams. On page 30 you can read how our team employed virtual reality technology to install a new EVOL casemaker at our Lansvale packaging facility in New South Wales. Similar technology was used to extend the regular slotted case and strapping line as part of the second phase of development of our Yatala packaging facility in Queensland. Other projects included commissioning an innovative portable wastewater treatment plant for our Specialty Boards facility in Hamilton.

However, last year did take its toll on our ability to achieve the challenging sustainability targets we set in 2015 targeting zero environmental burden. In 2020, the business was not able to fully realise the benefits from recent investments that should have markedly improved our sustainability.

As a business we have taken stock of our recent performance and are confident tangible and sustained benefits will be delivered through improvements such as the new Christchurch packaging facility to be opened in late 2021 and the wastewater treatment plant planned for Kinleith Mill, which was granted resource consent by the regional council in April 2021.

In addition. we have reviewed our sustainability aspirations to set a five-year course of action to guide our journey The overarching aim is to create solutions by nature to make a difference each day. which we will do by continuing to innovate in the use of wood fibre and sharing the benefits of the circular bio-economy.

There is growing awareness of the central role of an integrated forestry and wood processing sector to New Zealand's circular bio-economic objectives. The important current and future contribution of Oji Fibre Solutions is recognised by our involvement in the New Zealand Government's Industry Transformation group tasked with drafting a plan for the future of the sector.

I am proud of this important role Oji Fibre Solutions plays in advancing the circular bio-economy We are all working together to balance managing the immediate challenges while focusing on the future opportunities.

A change in Chairman

It is only fitting to recognise outgoing resident Chairman Mr Hiroyuki Isono's role with Oji Fibre Solutions as Chairman since 2014. In March of 2021, it was announced that Isono san had been promoted to the role of Senior Executive Director of Oji Holdings Corporation. He has therefore relocated to Japan. We all congratulate Isono san on his promotion.

Oji Fibre Solutions has significantly benefited from Isono san's knowledge and leadership. During his chairmanship, Isono san has been instrumental in securing a positive future for the company, overseeing the investment highlighted on pages 18 and 19 to expand, update and enhance our production facilities.

Oji Fibre Solutions' new Chairman Mr Azumi Kawabe has been involved in Oji Holdings Corporation's wood and paper business in North America and Japan for many years and brings extensive experience relevant to Oji Fibre Solutions. We are fortunate to already have Kawabe san resident in New Zealand so we can benefit from his guidance directly.

I am greatly honoured to have worked closely with Isono san in delivering a strong foundation for the future of Oji Fibre Solutions, and look forward to building on this with Kawabe san.

Dr Jon Ryder
Chief Executive Officer
Oji Fibre Solutions

Click here to view the full OjiFS Sustainability Report for 2020-21