Canon confirms closure of major Chinese printer factory

Japanese tech company Canon Inc confirmed on Tuesday that it has closed its printer factory in Zhongshan in China's Guangdong province.

The company attributed the shutdown of the factory, effective from Nov 21, to a shrinking global laser printer market, changes in people's working styles, and the accelerated contraction of laser printer use in offices. A Canon statement provided to China Daily added that "it is unlikely to see any significant recovery in the long term".

"The laser printer market in China is also shrinking substantially, resulting in a sharp decline in orders for the company's factory in Zhongshan, which has been the main production base for laser printers in the Chinese market," the Canon statement read.

"We have made multiple efforts to sustain the operation of the factory, but the reasons mentioned above plunged the plant into operational difficulties where continued production was no longer possible."

The company noted that, over the past 24 years, the Zhongshan municipal government, industrial groups, suppliers, business partners, customers and local residents have provided it with tremendous help and support, for which it said it was deeply grateful.

With regard to the workers who have lost their positions in the factory, Canon said it will comply with relevant laws and regulations, give maximum consideration to employees' interests, and listen to the opinions of local government departments in human resources and social security, as well as the labor union.

"We will provide economic compensation and reemployment support," the statement added.

"In terms of employee reemployment, we have also received strong support from local government. We have proactively contacted companies in surrounding areas, and several companies have already offered job recruitment positions."

Established in 2001, Canon (Zhongshan) Office Equipment Co produces a wide range of laser printers and is one of the company's major laser printer manufacturing bases. As of April 2022, it had produced a total of 110 million laser printers. In 2022, its total industrial output reached nearly 3.2 billion yuan ($452.6 million), and the industrial facilities it leased covered an area of 125,000 square meters.

The Japanese multinational emphasized that its other production bases in China continue to operate normally.

"China is one of Canon's most important markets with enormous growth potential," the statement read.

"We believe that China's business environment will continue to improve in the long run, and we are confident in the Chinese market's development potential and possibilities.

"Therefore, Canon will continue to deepen its presence in the Chinese market, striving for long-term development and sustainable growth and contributing to China's development," it added.

Data from market consultancy IDC showed that Canon's market share in China's laser printer market fell from 7.7 percent in 2018 to 3.9 percent in the first three quarters of this year, while the market share claimed by domestic brands has risen to 41.5 percent.

In the first half of the year, shipments of A4 laser printing devices in China reached 3.18 million units, down 5 percent year-on-year, while shipments of A3 laser printing devices amounted to 272,000 units, a decline of 10 percent year-on-year.

fanfeifei@chinadaily.com.cn