Canon US Toner Plant to Use Robots to Cut (Human)Labor Cost

2011-11-01T10:05:09-04:00

Canon U.S. Virgina Toner Plant to Use Robots to Cut (Human) Labor Costs Canon Looks To Cut Costs By Y300B Via Automation TOKYO-Canon Inc. (CAJ) plans to slash at least Y300 billion ($3.88 billion) in costs by 2015 by automating plants at home and abroad as part of drastic overhauls to cope with the strong yen and fierce competition, The Nikkei reported early Thursday.At the heart of the cost-cutting drive is automating commercial toner plants. Canon has been using robots to replace workers at its Oita Prefecture toner facility, and will expand such efforts to the U.S. and Europe. The company intends to lift its current global automation rate for office toner from 70-80% to about 90% in five years.In the six or so years since automating the Oita site, yield rates have improved, lifting profitability. Because the firm produces large amounts of toner and other consumables, automating their production will boost earnings. At its toner plant in the U.S. state of Virginia, the company will use robots to speed up production and cut labor costs. It will increase the number of automated production lines from three at present to around 10 over the medium term.In Europe, Canon is considering building a factory that will be automated from production through recycling. It will soon select a location, and aims to have the facility onstream from 2012. With the toners to be sold locally, the move will lift euro-denominated transactions and help combat the resilient yen. For every yen gained versus the dollar, Canon's operating profit falls by roughly Y10 billion a year. And it takes an almost Y6 billion hit for each Y1 rise against the euro. Canon assumed a rate of Y80 to the dollar and Y115 versus the euro for the second half of 2011, but the currency is now more than Y3 and around Y10 stronger, respectively. If the exchange rates stand pat, operating profit could be pushed down by at least Y20 billion for the fiscal year ending Dec. 31. Including other moves such as the insourcing of materials and procuring more parts abroad, Canon aims to lower its cost-of-sales ratio to a record low of 45% by 2015, down from 52% last year. Sales are expected to hit Y5 trillion that year, up 35% from 2010.

Tonernews.com, November 1, 2011. USA

This topic has 0 replies, 1 voice, and was last updated 11 years, 5 months ago by Anonymous.

Viewing 1 post (of 1 total)

Author

Posts
#25472

Anonymous
Inactive

Canon U.S. Virgina Toner Plant to Use Robots to Cut (Human) Labor Costs

Canon Looks To Cut Costs By Y300B Via Automation
TOKYO-Canon Inc. (CAJ) plans to slash at least Y300 billion ($3.88 billion) in costs by 2015 by automating plants at home and abroad as part of drastic overhauls to cope with the strong yen and fierce competition, The Nikkei reported early Thursday.At the heart of the cost-cutting drive is automating commercial toner plants. Canon has been using robots to replace workers at its Oita Prefecture toner facility, and will expand such efforts to the U.S. and Europe. The company intends to lift its current global automation rate for office toner from 70-80% to about 90% in five years.In the six or so years since automating the Oita site, yield rates have improved, lifting profitability. Because the firm produces large amounts of toner and other consumables, automating their production will boost earnings.

At its toner plant in the U.S. state of Virginia, the company will use robots to speed up production and cut labor costs. It will increase the number of automated production lines from three at present to around 10 over the medium term.In Europe, Canon is considering building a factory that will be automated from production through recycling. It will soon select a location, and aims to have the facility onstream from 2012. With the toners to be sold locally, the move will lift euro-denominated transactions and help combat the resilient yen.

For every yen gained versus the dollar, Canon’s operating profit falls by roughly Y10 billion a year. And it takes an almost Y6 billion hit for each Y1 rise against the euro. Canon assumed a rate of Y80 to the dollar and Y115 versus the euro for the second half of 2011, but the currency is now more than Y3 and around Y10 stronger, respectively. If the exchange rates stand pat, operating profit could be pushed down by at least Y20 billion for the fiscal year ending Dec. 31.

Including other moves such as the insourcing of materials and procuring more parts abroad, Canon aims to lower its cost-of-sales ratio to a record low of 45% by 2015, down from 52% last year. Sales are expected to hit Y5 trillion that year, up 35% from 2010.
Author

November 1, 2011 at 10:05 AM

Viewing 1 post (of 1 total)

You must be logged in to reply to this topic.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty, or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content on our site.