Canon Inc. announced today that it is adding a third Philippines-based subsidiary, Canon Business Machines (Philippines), Inc., with the construction of a new manufacturing company scheduled to begin operations in April 2013.
The new manufacturing facility, to be located in First Philippines Industrial Park, Batangas, Philippines, targets the production of laser printers and accessories and parts to optimize the company’s global production system, according to Canon.
The decision to build the new manufacturing facility is in response to steady growth in the laser market, particularly among competitively priced models that the vendor expects will fuel increased future demand.
“I see the opening of this new facility as Canon positioning itself to better compete in emerging markets where users are very price conscious,” says Larry Jamieson, director, hard copy industry advisory service, Lyra Research.
Rather than retrofit an existing facility, Jamieson contends that it’s more advantageous for Canon to build a new manufacturing plant to build products that will better fit the requirements of these emerging markets, most notably, China, India, Brazil, Africa and Asia, for example.
Lower cost monochrome laser devices will be in the greatest demand in these regions. According to 2011 Lyra Research on the low-end monochrome laser MFP worldwide markets (2008-2015), a rebound in product shipments is attributed largely to the prominence of opportunities in emerging regions.
“This is a move by Canon to stay out front in the market,” says Jamieson.
Canon’s two existing Philippines-based subsidiaries are Canon Information Technologies Philippines, Inc., established in 1991 and Canon Marketing (Philippines), Inc., established in 1996.