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Fuji Xerox ventures into Vietnam

Zafar Anjum | Aug. 22, 2012
With a new manufacturing site, the company is set to increase capacity to expand business globally.

Fuji Xerox will establish a new manufacturing site in the Vietnam Singapore Industrial Park in Hai Phong, a city in northern Vietnam, the printing products maker and solutions provider announced on 21 August.

Fuji Xerox Co is a 75-25 joint venture between FUJIFILM Holdings Corporation and Xerox Corporation (U.S.A.).

Hai Phong is the third largest city in Vietnam and the biggest port in northern Vietnam.

The new entity-Fuji Xerox Hai Phong Co.- will expand the concern's business operations in the global market, said the company in a statement. With the establishment of the new site, Fuji Xerox said it is aiming to increase manufacturing capacity, while avoiding overconcentration at its other existing manufacturing sites in China.

Construction of the facility will begin in December 2012 and the operation will start in November 2013. The total amount of investment in this project is about nine billion yen.

 According to the statement, the new site will mainly manufacture products such as digital colour multi-function devices and small-sized light-emitting diode (LED) printers, and the manufacturing capacity will be around two million units per year. It will also manufacture components for these devices such as printed wiring boards and drum cartridge components.

The company said this move will help it reduce costs by expanding component procurement sources throughout Asia.

Fuji Xerox said it chose Vietnam as the location of its new manufacturing site because Vietnam has been making steady progress toward industrialisation. The country is advantageous as it has industries such as information equipment manufacturers in a concentrated manner, as well as an extensive land transportation network connecting the country with China, Thailand and other Association of Southeast Asian Nations (ASEAN), which will facilitate Fuji Xerox in establishing supply chains.

 

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