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Mark Peters : April 12th 2005 - 22:25 CET
Canon builds digital camera parts factory in Japan

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CanonCanon builds digital camera parts factory in Japan : Canon Inc., which forecasts a sixth annual record profit this year, is building a plant that makes digital camera parts near an existing assembly facility in southern Japan to cut costs. Canon will build the plant in Oita city in the southern island of Kyushu, to make imaging sensors designed for digital cameras, President Fujio Mitarai said during a press conference yesterday, according to Hiroshi Shiozuka, a Canon spokesman. The Tokyo-based company also makes the image sensors in a plant in Kanagawa prefecture. The new factory is a part of Canon's effort to consolidate its digital camera production to cut logistic and other costs, the company said.
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The Tokyo-based company expects to produce 6.8 million digital cameras and camcorders in Oita next year, Shiozuka said. The Nihon Keizai newspaper earlier reported that the new plant may cost at least $93 million. The existing facility will continue to make the sensors after the Oita factory starts production, the newspaper said. Canon has said that its digital camera shipments will total 16.8 million units this year, compared with 14 million units in 2004, because of increased sales in Europe and other markets which aren't as saturated as Japan.





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