Nippon Paper Chemicals has announced that a new coal-fired boiler is to be installed at its Gotsu Works (located in Gotsu City, Shimane Prefecture, Japan). Representing a capital investment of 5.3 billion yen, the work is scheduled for completion in September 2008. In addition to being the sole facility in Japan to produce dissolving pulp, Gotsu Works also manufactures various functional chemical products utilizing timber constituents, and it has an established reputation in several markets.

A concern for the managers at Gotsu Works, however, has been that the boilers are powered by fuel oil and so the recent sharp rise in the cost of oil has put downward pressure on earnings. Reducing overheads by switching to an alternative fuel has thus become a matter of pressing urgency. As soon as the new boiler is operational, the two existing oil-fired boilers will be taken off line, cutting annual fuel oil consumption by 42,000 kiloliters. The resulting reduction in energy costs is part of a plan to upgrade operations and thus contribute to the future development of Gotsu Works.