Tokyo, Apr 16, 2009 - (JCN Newswire) - Canon Inc. and Canon Chemicals Inc. announced today that they would again delay the construction and start of operation of Hita Canon Materials Inc., a manufacturing base in Hita City, Oita Prefecture.
Upon establishing Hita Canon Materials in June 2008, original plans had called for construction to begin the following December 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 overseas.
This announcement was followed by the collapse of a major U.S. securities firm, triggering a global economic downturn that resulted in a sudden decline in demand growth for toner cartridges, necessitating a revision of earlier production plans. This led to an announcement by Canon in November 2008 stating that the construction and start of operations of Hita Canon Materials would be delayed by approximately six months, with construction to begin in June 2009, and operations to commence in March 2010.
However, as the significant decline in demand has continued for longer than expected with no clear indication of when a recovery might be expected, Canon has again decided to delay the construction and start of operation of Hita Canon Materials. With regard to future construction and operation plans, Canon will watch market developments for the time being and announce a revised schedule once the timing has been determined.
This decision will have no impact on the 152 employees already hired to work at Hita Canon Materials, who are currently undergoing training at Hita Canon Material's parent company, Canon Chemicals Inc., located in Tsukuba City, Ibaraki Prefecture.
About Canon Inc.
Canon Inc. (NYSE: CAJ), headquartered in Tokyo, Japan, is a leader in the fields of professional and consumer imaging equipment and information systems. Canon's extensive range of products includes copying machines, inkjet and laser beam printers, cameras, video equipment, medical equipment and semiconductor-manufacturing equipment. With over 118,000 employees worldwide, Canon has manufacturing and marketing subsidiaries in Japan, the Americas, Europe, Asia and Oceania; and a global R&D network with companies based in the United States, Europe, Asia and Australia. Canon's consolidated net sales for fiscal 2006 (ended December 31, 2006) totalled $34.9 billion (at an exchange rate of 119 yen = US$1). Visit the Canon Inc. website at: http://www.canon.com
Contact:
Canon Inc.
Andrew Giles
giles.andrew@canon.co.jp
+81-3-3758-2111
Apr 16, 2009
Source: Canon Inc.
Canon Inc. (TSE: 7751) (U.S: CAJ)
From the Japan Corporate News Network
http://www.japancorp.net
Topic: Press release summary
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