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Canon Opens Toner and Cartridge Plant after Long Delays
May 17 marked the long-delayed start of operations at the Hita Canon Materials toner and cartridge components facility in Hita, Oita Prefecture, Japan, according to Kyodo News and the Mainichi. Parent company Canon, Inc., was plagued with construction delays; the first shipment of parts left the plant two years and eight months behind schedule. Originally, construction was expected to commence in December 2008 with operations beginning in September 2009. However, Canon decided to delay construction due to the global recession and subsequent decline in demand for toner cartridges. Actual construction began in June 2011. The new facility employs 160 workers, but Canon hopes the number will reach 350 by 2015.
Canon is also expanding its toner cartridge manufacturing capacity in the United States (see “Canon’s U.S. Toner Cartridge Plant Poised for Growth”). Canon Virginia is ramping up production at its Newport News facility, with plans to increase the workforce by up to 25 percent over the next four years. Additional plans include adding toner cartridge production lines to help to meet the growing demand for color printers and cartridges that the industry has seen over the past 10 years, according to Canon Virginia vice president Ron Briggs. Canon also expects to add jobs to its toner cartridge recycling plant in Gloucester, VA.
Canon’s Q1 financial results indicated a downturn in laser shipments (see “Despite Flagging Printer Sales, Canon Reports Increase in Q1 Profit and Raises Full-Year Forecast”), but it seems the firm expects this will be temporary and that demand for supplies will remain strong. Canon’s decision to increase production capacity for toner cartridges and expand its workforce in both Japan and the United States is a strong indication of the company’s optimism.
It may also be that Canon is still adjusting production levels to meet demand for certain cartridges. Last year, for example, the firm was plagued by product shortages and that was before the parts-procurement challenges brought on by the earthquake and tsunami in Japan and the flooding in Thailand (see “HP Toner Cartridge Shortage: It’s Not Over”).
It will certainly be interesting to see if Canon’s significant investment in production will pay off. If declines in laser printer sales continue, the firm may find itself with the need to curtail production once again as it did during the last recession.
Canon group unit opens printer component plant in Oita
OITA, Japan — A group firm of Canon Inc. began operations at its printer toner and toner cartridge parts plant in Hita, Oita Prefecture, on Thursday, two years and eight months behind the original schedule.Hita Canon Materials Inc. held a ceremony marking the first shipment of the parts as a truck loaded with them left the plant, with about 130 employees giving a sendoff.
Operation of the plant, originally slated to start in September 2009, was delayed twice due to the global economic downturn amid the financial crisis the previous year.
The new plant now has about 160 employees and plans to increase the number to 350 by 2015.
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