Japan’s biggest paper maker, Nippon Paper Group, will lay off at least 1,300 workers and close at least five factories.

Part of the blame is on the March 11 earthquake and tsunami, which damaged three factories.  Company officials say it’s not worth it to rebuild the damaged factories.

In fact business is so bad that Nippon Paper says it will close down factories, and lay off employees, as part of plans to cut production by 800,000 tons of paper.

And two industrial giants in Japan are merging in an attempt to save themselves.  Hitachi and Mitsubishi will merge some of their businesses that are involved with energy and environment, to create a new company.

This continues a trend between the two companies.  They’ve already created a joint rail transportation company.  Analysts say eventually the two companies will fully merge.