<B>Japanese Paper Company Creating Joint Sales Operation</B>

Oji Paper Co Ltd plans to consolidate its group paperboard businesses, the Nihon Keizai Shimbun reported, citing company sources. Oji is the largest papermaker in Japan.

Oji will spin off its paperboard division, and integrate sales with other group paperboard firms to form a joint sales company by the middle of next year, it said.

Oji Paper will hold the controlling majority stake in the firm. Takasaki Sanko Co., Chuo Paperboard Co., and Hokuyo Seishi will hold the remaining share in the combined operation.

When fully operational the venture is expected to control 30 percent of the domestic cardboard market.

Additionally, Takasaki will close two production lines that make specialty paper by March, 2002, and will focus on the cardboard business.