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Canon To Spend Y140 Billion To Up Toner Cartridge Capacity
NOV 07 TOKYO — Canon Inc. will invest Y140 billion ($ 739 mil) in southern Japan to increase its capacity for toner cartridges used in printers and copy machines.The Tokyo-based company said Thursday it plans to spend Y80 billion to build a new toner cartridge plant in Oita Prefecture, southern Japan by 2009. It will also spend Y60 to beef up capacity at an existing factory there.Canon, which is headed for its eighth straight year of net profit gains, makes the vast majority of its income from printers and copy machines. Around 20% of its annual revenue come from making laser printers sold under the Hewlett- Packard Co. (HPQ) brand.Canon is pouring investment in making replaceable toner cartridges for such products. Customers are largely locked in to long-term, repeat purchases, insulating the company from price falls and generating high margins.The new factory will begin operations in September 2009 and have 1,000 workers as of the end of 2010.The news follows Canon’s announcement in September to spend Y80 billion on a printer toner cartridge plant in Aomori Prefecture, northern Japan, that will go live in 2008.
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