Sunday, September 9, 2012

No. 609: Fuji Xerox goes to Vietnam to satisfy the growing demand for printers in Asia (September 8, 2012)

Business trend:
Fuji Xerox will build a new plant to manufacture multi-function printers and A4 printers in Vietnam with an investment of 9 billion yen. The new plant will start operation in November 2013 with an annual production capacity of 700,000 units, and the annual production capacity will increase to 2 million units by 2015. It will have an area of 170,000 square meters and the total floor space will be 46,000 square meters, employ 700 workers. It will be built in Hai-phong in the north part of Vietnam.

Unlike in advanced countries where multi-function printers are dominant, demand for low-priced small printers, especially for A4 printers, is growing rapidly in newly industrialized countries. Although Fuji Xerox has focused on industrial market, it is hastily expanding the market for small printers. Other Japanese business machine manufacturers are also increasing the presence in Vietnam. Canon has been operating a printer plant in Hanoi since 2002, and will build a new plant in the Philippines in 2013. Richo built a plant in Thailand to export printers worldwide from Thailand. The moves of these Japanese business machine manufactures are part of the strategy to diversify the production base to avoid the risk of overconcentration in China. The strategy of the three companies is quite reasonable. As economy grows, demand for more expensive and higher performance machines will automatically grows. Who predicted the advent of a paperless society?   

Fuji Xerox builds a plant in Vietnam to satisfy the 
growing demand for small printers in Asia and Russia. 

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