Nippon Paper Stock Falls as 9 Die in Quake-Hit Plant Collapse on July 28

An 80-meter reinforced concrete chimney collapsed at Nippon Paper Industries (3893.T) Yatsushiro plant on July 28 after a magnitude 7.1 earthquake struck Kumamoto Prefecture. Nine workers in a nearby two-story office building died in the collapse. President Akira Sebe held a press conference on August 5 and stated the company takes the disaster extremely seriously, while acknowledging the chimney had not undergone major structural inspection since 2006.

What happened at the plant

The earthquake struck on July 28 with a seismic intensity of upper 6 in Yatsushiro, the second-highest level on Japan’s scale. The 80-meter chimney collapsed almost immediately, striking the office building where 414 people were working across the facility. Nine workers in the office died, and two others who survived were sitting at desks near the deceased. Rescue teams extracted 11 trapped people by July 30 through manual debris removal. The nine victims were men aged 30 to 60.

Emergency response failures and power loss

When the earthquake hit, all electrical power to the plant was lost instantly. Factory director Yamabe Yoshisada stated, “Honestly, I could do nothing.” The company attempted to call emergency services but neither the police nor ambulance lines connected. About 40 minutes later, an unaffected employee reached a relative working at the fire department, who then coordinated the rescue.

Inspection history and structural concerns

Nippon Paper conducted major inspections of the 80-meter chimney in 1997 and 2006, but the 2006 inspection was the last comprehensive review. After the 2016 Kumamoto earthquake damaged other chimneys at the site, the company reinforced some structures but did not perform detailed inspection on the collapsed chimney. The company confirmed it conducted only visual checks for cracks and rust on a daily basis. The Ministry of Economy, Trade and Industry has ordered inspections of all chimneys at the site, including those undamaged, with mandatory reinforcement or replacement as needed.

Operations halted and investigation underway

The Yatsushiro plant, which began operations in 1924 under predecessor Kyushu Paper, manufactures newsprint and printing paper. President Sebe stated the company is not considering closure but declined to provide a timeline for reopening. The facility has sustained severe damage beyond the office building. Nippon Paper has established an investigation committee to determine whether the chimney deteriorated with age and whether durability standards were met.

Final Thoughts

With the Yatsushiro plant offline and nine workers dead, Nippon Paper faces operational disruption, regulatory scrutiny, and potential liability. Investors should monitor the investigation findings and any government enforcement action regarding inspection protocols.

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