Business News
Notice regarding start of construction of Hita Canon Materials
Thursday 02. December 2010 - Canon Inc. announced today that it would begin construction of Hita Canon Materials Inc., a manufacturing company based in Hita City, Oita Prefecture, in June next year with the aim of starting operation in May 2012.
Original plans for Hita Canon Materials, which will produce toner cartridge parts and toner, had called for construction to begin in December 2008 and operations to commence in September 2009, making use of Canon’s latest automated production systems to manufacture highly functional components, which would be supplied to the company’s toner cartridge production bases in Japan and abroad.
Soon after the announcement of these plans, however, the collapse of a major U.S. securities firm triggered a global economic downturn, which resulted in a sudden decline in demand for toner cartridges. These developments necessitated a revision of earlier production plans and the decision to delay the start of construction.
A careful ongoing review of market and economic conditions by the company indicates that the laser printer market is headed toward a recovery which, in turn, is expected to drive steady growth in demand for toner cartridges. Accordingly, upon assessing its production allocation from a mid- to long-term perspective, the company decided to begin the construction of Hita Canon Materials, albeit with some changes to building facilities and other aspects of the original plans.
Hita Canon Materials is scheduled to begin operations as a key production base for highly functional toner cartridge components in May 2012.
Overview of Hita Canon Materials Inc. (Newly revised items underlined)
1. Name: Hita Canon Materials Inc.
2. Location: Oaza Nishiarita, Hita City, Oita Prefecture
3. Representative: Kiichiro Sakashita, President
4. Business activities: Production of toner cartridge parts and toner
5. Employees: approx. 350 (as of 2015)
6. Capital: 80 million yen
7. Investment ratio: Canon Chemicals Inc.: 100%
8. Establishment: June 2008
9. Land area: approx. 366,000 sq. meters
10. Total floor area: approx. 34,500 sq. meters (by completion in May 2012)
11. Investment: approx. 30.0 bil. yen (as of 2015)
12. Construction (start): June 2011 (tentative)
13. Start of operations: May 2012 (tentative)