Tokyo, Nov. 6 (Jiji Press)--Nippon Paper Industries Co. said Friday it will cease production of graphic paper and pulp at a plant damaged by a powerful earthquake that struck Kumamoto Prefecture, southwestern Japan, in July.

The company made the decision after concluding that repairing or replacing production equipment at the mill in Yatsushiro would take three to four years and significant costs. It will explore new business opportunities at the site.

Nippon Paper expects to book about 20 billion yen in losses related to the earthquake in the year ending in March 2027, including 15.1 billion yen for the first half.

Including other disaster-related losses, the company expects to swing to a consolidated net loss of 40 billion yen in the year, compared with a profit of 11.7 billion yen the previous year.

Nippon Paper will transfer production of newsprint and other items at the Yatsushiro plant to its other mills in Japan and outsource production of some products to other companies.

Nippon Paper's Yatsushiro mill (center), damaged by a major earthquake in Kumamoto Prefecture, southwestern Japan, photographed on July 29

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