In what would seem like a major gamble, DAIO PAPER CORP. will shortly open a suburban Los Angeles marketing subsidiary in preparation for launching sales of facial tissues to supermarket and drugstore chains. Japan's fourth-largest paper company and the top maker of tissues, which are sold under the Elleair brand, discounts the riskiness of its move. It says that while production costs might be higher in Japan, tissues sell for more in the United States than at home. Daio Paper expects to sell 220 tons of tissues a month initially and 1,100 tons monthly by late 1999.
An exchange rate of ¥145=$1.00 was used in this report.