Chuetsu Pulp & Paper Falls on Fake Recycling Data
Chuetsu Pulp & Paper Co. (3877) fell the most in more than 1 1/2 years after the company joined a group of Japan's top paper producers in admitting it falsified the percentage of recycled paper used in its products.
Shares in the Tokyo-based maker of paperboard and newsprint fell 6.2 percent or 11 yen to close at 168 yen, on the Tokyo Stock Exchange, the largest drop since June 8, 2006.
The company said yesterday the recycled paper used in some of its products was less than the standard under the Green Purchasing Law, which provides benefits to companies that meet environment friendly manufacturing standards, such as using recycled materials. The government and other national organizations are required to buy certified recycled products.
Nippon Paper Group Inc. (3893), Japan's second biggest papermaker, said on Jan. 16 that it sold recycled paper products containing less-than-claimed amounts of used paper, forcing the resignation of company president Masatomo Nakamura. On the same day, Oji Paper Co. (3861), Japan's biggest paper maker, Daio Paper Corp. (3880), Mitsubishi Paper Mills Ltd. (3864) and Hokuetsu Paper Mills Ltd. (3865) said they falsified data.
The products containing less than the required amount of used paper include copying paper, printing paper and postcards. Some of the products were supplied to Japan Post.
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