Canon partially shuts down its solely China digicam function, might shut it down fully

Canon has partially closed its Zhuhai digicam manufacturing facility in southern China and is contemplating an entire shutdown amid a shrinking digital digicam market, COVID-19 and ongoing chip shortages.

This was adopted by an inner letter from the corporate that started circulating on-line, formally asserting adjustments to the function. China macro financial system, Canon’s public relations division consultant Shen Yu cited “unprecedented difficulties” that compelled it to make this choice, and that “regardless of the mixed efforts of the corporate and all workers, it has did not reverse the state of affairs.”

Canon’s solely Mainland China facility faces closure

The Zhuhai facility is Canon’s solely digicam manufacturing unit in China and has been in operation for 32 years. In line with Reuters And YMC Cinema, if there was an entire shutdown, it will have an effect on 1,317 workers. There is no such thing as a phrase but on what number of have been affected by the partial closure.

“The headquarters must accommodate the general working construction of the group,” Yu continues. “After cautious consideration, a troublesome choice needs to be made: to stop manufacturing of the corporate.”

World Occasions The manufacturing unit has been sluggish recently, citing the recognition of smartphones in recent times as a significant motive. As a observe, World Occasions is a newspaper printed below the Communist Occasion of China and infrequently disseminates misinformation, so reporting right here must be taken under consideration. Nevertheless, this excuse has been widespread amongst digicam producers globally for a while now. Shipments of digital cameras have declined from 120 million to lower than 10 million models over the previous 11 years, a decline of 93%.

World Occasions says that funding within the Zhuhai manufacturing unit had reached $220 million by the tip of 2020, and that 12 months it produced 12.29 million lenses, 1.03 million digital cameras and 94,000 video cameras. The Zhuhai shutdown, both partially or wholly, signifies that Canon not wants the inventory which may be produced there or that it intends to maneuver manufacturing elsewhere.

Canon is specializing in mirrorless, not DSLR

The manufacturing unit shut down shortly after Canon’s CEO publicly acknowledged that the EOS 1D X Mark III can be its final flagship DSLR.

A Japanese newspaper report acknowledged “Canon’s SLR flagship mannequin is named the ‘EOS-1’ sequence, the primary of which appeared in 1989.” Yomiuri Shimbun wrote in late December, citing Canon Chairman and CEO Fujio Mitarai. “The most recent mannequin ‘EOS-1D X Mark III’ launched in 2020 can be actually the final mannequin.”

Whereas its 1DX Mark III is now a factor of the previous, the corporate would not intend to cease producing DSLRs.

“Demand for newbie and intermediate SLR cameras abroad is robust, so we plan to proceed improvement and manufacturing for a while,” Mitarai clarified on the time.

It isn’t clear whether or not the corporate plans to provide any new fashions and to what capability it intends to take care of its present manufacturing of older fashions. Regardless of the case, it in all probability will not be produced in China as Canon prepares to cease operations there, or at the very least sluggish them down considerably.

picture credit score: Header Picture licensed by way of DepositPhotos.

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