Oji Holdings traces its roots to the “Paper Manufacturing Company,” established in 1873 through the efforts of Eiichi Shibusawa—an industrialist often referred to as the “Father of Japanese Capitalism” who founded Japan’s first bank and laid the groundwork for a wide range of industries, including railways, insurance, and paper manufacturing—and boasts a history spanning 150 years. The company owns approximately 190,000 hectares of company-owned forests—among the largest in the private sector in Japan. For the past 100 years, it has been planting trees and nurturing forests in Kuriyama Town, Hokkaido, and continues to engage in forestry with a vision toward harvests 100 years from now.

A 150-year legacy of determination to see things through, inherited from Eiichi Shibusawa

Located in central Hokkaido, Kuriyama Town in Yubari District is a town where forests cover about half of its total area. It once flourished alongside the heyday of the Yubari Coal Mine, and is also famous for the fact that Hideki Kuriyama, former manager of the Nippon Ham Fighters, established a youth baseball field here named “Kurinoki Farm” after himself, and has been fostering community ties for over 20 years. In the mountainous region of this town, a vast forest stretches out amidst a snowy landscape as far as the eye can see. This is a company-owned forest held by Oji Holdings (hereinafter Oji HD). Tracing its history back, it leads to 1873, when Meiji-era industrialist Eiichi Shibusawa was deeply involved in establishing a paper manufacturing company. At that time in Japan, washi (traditional Japanese paper) was the mainstream, and Western-style paper—which could be mass-produced using Western techniques—did not yet exist. Producing it with their own hands was an indispensable challenge for supporting publishing and newspapers to widely disseminate information, and for advancing the nation’s modernization. Although the company faced a difficult start with continuous losses, Shibusawa did not give up. That “never-give-up” spirit has become the unshakable foundation of the company, which has continued for 150 years.

We grow our own ingredients

When the company was founded, rags were the raw material for paper. Later, as civilization advanced and demand for paper continued to grow, the company developed a manufacturing process to produce paper from wood in 1889. Since the 1930s, the company has been committed to forest cultivation to ensure a stable supply of raw materials for the future. Today, the company’s forests in Japan cover approximately 190,000 hectares—roughly the same as the total area of Osaka Prefecture—making it the largest such operation among private companies in the country. The company focuses on planting, cultivating, and harvesting trees that have traditionally grown wild in each region—such as Japanese white spruce and larch in Hokkaido, and Japanese cedar and cypress on Honshu. Tetsuhiko Ogasawara and Yu Sato of Oji Forest & Landscape are responsible for managing this forest in Kuriyama Town, Hokkaido.

Business enriches the forest

The reason the company continues to maintain its forests is simple: “Those who use wood have a duty to plant trees.” This single principle has given rise to an endeavor that nurtures forests, protects water sources, and benefits agriculture downstream. As the forests thrive, the water becomes clearer, and these benefits extend to agriculture and the sea (fishing) downstream. Although these effects cannot be proven with hard numbers, “I believe they do exist”—that is their genuine conviction. The fact that a rich natural environment awaits at the end of their business endeavors has been quietly proven by the passage of 150 years.

In a winter forest where temperatures drop to minus 20 degrees, the harvest is in full swing

In the company’s company-owned forests in Hokkaido, the harsh winter is actually the peak season for harvesting. It is precisely during Hokkaido’s winter—when temperatures drop below freezing and deep snow accumulates—that the conditions are ideal for harvesting high-quality timber. There is a practical reason for this, one unique to the northern climate.

Winter forests produce the finest timber

In winter, trees enter a dormant state and their internal moisture content decreases. While cutting a tree in summer causes sap to gush out, a winter tree retains a tight grain structure, dries quickly, and yields high-quality timber that lasts longer. Furthermore, sub-freezing temperatures freeze the ground, and accumulated snow acts as a cushion, allowing heavy machinery weighing dozens of tons to drive in without damaging the soil. Since frozen ground also makes it easier to slide and transport logs, winter is the ideal season for forestry. “Since trees store moisture, it’s better to harvest them in winter when they’re dormant and dry.” Mr. Sato and his colleagues speak naturally about this wisdom unique to the northern regions.

The expert’s eye—something machines can’t replicate

They are, so to speak, modern-day “lumberjacks.” Operating heavy machinery deep within snow-covered forests, they have a complete grasp of the area’s water flow and the balance of its vegetation. “You mustn’t cut here. If you cut here, the water will dry up.” As if speaking these words, they make decisions based on their senses—honed by years of experience—and determine which trees to harvest today while envisioning what the forest will look like a hundred years from now. Although the introduction of state-of-the-art machinery has dramatically improved safety and efficiency, in the end, it is their keen eye that determines the forest’s future.

From log to finished product in one minute: A “waste-free” cycle driven by industry

What were once sites where workers risked their lives walking up slopes with chainsaws in hand have now become highly mechanized. As safety has improved and it has become easier for younger generations to enter the field, signs of change are beginning to emerge in the previously severe labor shortage.

The Harvester’s Job: Turning Trees into Logs in Just One Minute

The harvester—a piece of heavy machinery that handles everything from felling to delimbing and log extraction—symbolizes this mechanization. Its onboard computer instantly assesses the tree’s curvature and diameter the moment it grips the trunk, calculating the optimal number of cuts to maximize value. With a sound of snow being kicked up, the tree is trimmed to the specified length in less than a minute. This is an essential innovation for working safely with a minimal crew, and even the tips of the remaining branches are utilized as biomass fuel, ensuring that forest resources are used to the fullest.

The demand for paper is growing worldwide

In this way, the timber harvested from the forest is used as building materials and furniture, while lower-quality wood unsuitable for lumber is turned into wood chips and transformed into various products, including paper, corrugated cardboard, and biomass fuel. With the advance of digitalization, it is certainly true that the role of paper is changing. However, while demand for information media such as newspapers is shrinking, this segment has never accounted for a significant portion of Oji Holdings’ sales to begin with. Rather, demand for everyday uses rooted in daily life—such as “wrapping” and “wiping”—continues to grow globally, and the two executives say, “Far from disappearing, demand for corrugated cardboard and hygiene paper is actually increasing.” The expansion of online shopping is further driving this demand. They produce paper, recycle it, and turn it back into corrugated cardboard. “There aren’t many companies that handle the entire process to that extent,” the two agree. Their system, which completes the entire cycle—from raw material cultivation and procurement to manufacturing and recycling—in-house, is a business model that is rare even on a global scale. Currently, they are also engaged in research to produce plastics and pharmaceuticals from wood, aiming to transform forest resources into future growth industries.

A Relay for the Next 100 Years. A Baton That Never Ends

Currently, many forests in Japan are left untended. The main reason is that efforts to keep forests healthy do not immediately translate into profits. The fact that companies like Oji Holdings continue to take a serious, business-oriented approach to forestry is helping to underpin the entire Japanese forestry industry.

Forests as a business protect Japan

Planting a single sapling won’t change society overnight. However, continuing to plant on a scale that allows for sustainable operations has the power to change the future. Nurturing trees, harvesting them responsibly, and keeping the economy moving will ultimately lead to leaving a healthy environment for the next generation. “We hope to pass these forests on to the next generation, so they can continue to build even better forests,” say the two, their words quiet yet powerful. A firm resolve lies behind their words. Behind this lies the reality facing Japan’s forests. Unmanaged forests eventually become overgrown, water sources are lost, and the risk of landslides increases. However, in reality, due to a shortage of workers and an aging population, many forests are left unmanaged and neglected. Trees are a renewable resource that humans can create through their own will. Furthermore, manufacturers around the world are accelerating efforts to shift from petroleum-based manufacturing to biomass, including wood. Oji Holdings’ continued commitment to forestry as a business is, in essence, a commitment to protecting Japan’s natural environment itself.

The trees we plant today will be there for our grandchildren

The trees planted today won’t be harvested until far in the future—in our grandchildren’s generation. For Japanese cedar and cypress, it takes 40 to 50 years; for Hokkaido fir and larch, 60 to 70 years. It will be our grandchildren’s generation that harvests the saplings we’ve planted. “We’re harvesting what our predecessors planted, and we want to entrust what we plant now to the next generation 100 years from now,” the two say. Their words convey a determination to persist single-mindedly in work that will not be completed within their own lifetimes. “Our mission is to nurture the forests, research the various materials they can provide, and deliver them to society.” As these words suggest, the vision that Eiichi Shibusawa envisioned 150 years ago is still alive today. They are carrying on this never-ending “100-year relay” as a business. Through this endeavor, they are passing on Japan’s prized abundance of water and greenery to the future, just as it is.

The post Working Toward a Forest for the Next 100 Years, Today and Every Day. “Oji Holdings” / Kuriyama Town, Yubari District, Hokkaido first appeared on NIHONMONO.