Mar 27, 2009. /Lesprom Network/. Japanese paper manufacturer Hokuetsu Paper Mills Ltd. will acquire Kishu Paper Co. through an equity swap on October 1, 2009 amid a plunge in paper demand from the global recession, as Dow Jones informed Lesprom Network. As a result, Kishu Paper will become a wholly owned unit of Hokuetsu. As part of the agreement, Kishu will exchange one of its shares for 0.195 Hokuetsu share, which evaluates Kishu at JPY7.4 billion ($75 million). The move comes as the companies try to buck the declining demand in the paper sector and the higher fuel costs which affect the earnings. The two paper makers will reduce production in Japan as part of an effort to adjust to the tough operating environment. Kyodo News noted that Kishu Paper will delist its shares from the Tokyo Stock Exchange and the Osaka Securities Exchange at end-September.