Canon budgets Bt6 bn for new printer plant in Prachinburi – Construction starts Feb 2012

Construction News

Although its major printer factory at Hi-Tech Industrial Estate in Ayutthaya was badly hit by the flood, Canon has demonstrated its commitment to continued investment in Thailand, announcing another Bt6 billion allocated to the set-up of a new factory for multifunction copiers in Prachin Buri.

Kazuhiro Kitamura, president of Canon Hi-Tech Thailand, said 100 per cent of the new factory’s output would be for export.

Construction of the 280,000-square-metre plant will start next month, and operations are to begin in April next year.

“Our plant in Prachin Buri will be one of three major export hubs for multifunction copiers, besides Japan and China,” Kitamura said.

He said the company had just started production at its latest inkjet-printer factory in Nakhon Ratchasima in November. It has double the production capacity of the Ayutthaya plant.

“Our inkjet-printer plant in Hi-Tech Industrial Estate, Ayutthaya, was fully impacted by the recent flood, which caused huge damage. The Ayutthaya factory, however, started some production on December 19, especially at the second floor. The plant is expected to resume normal operation in March.”

He said the temporary closure of its plant in Ayutthaya had caused some shortages of its printers in overseas markets, as many supporting factories for parts and accessories had been also damaged by the flood.

“Our confidence will rely on how effectively the government launches measures to prevent problems from flooding and other disasters in the future. What we expect is that they will have preventive measures to deal with flooding situations in the future,” Kitamura said.

Meanwhile, Wataru Nishioka, president and chief executive officer of Canon Marketing Thailand, said the company had achieved Bt8.6 billion in domestic sales last year, up 11 per cent from the Bt7.7 billion enjoyed in 2010. About 50 per cent of sales were digital cameras, 35 per cent printers, and 15 per cent copiers.

He said growth last year was lower than the targeted 20 per cent because of product shortages caused by the earthquake in Japan in the first half. The recent flood in Thailand, however, also affected the company on the demand side, which declined significantly over the period.

“We expect Bt10 billion in domestic sales this year, up 24 per cent over last year. Despite the flood, we still have great confidence in sustainable growth of the Thai economy,” Nishioka said.

He said Canon, a global leader in multimedia equipment, was opening the world of innovation to visitors at the BOI Fair at Impact Muang Thong Thani, which is running now until January 20.

Canon’s pavilion reflects the Thailand unit’s 17 years of operation, he said.


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