OLYMPUS responds to Shenzhen factory closures: digital camera market shrank

category:Society
 OLYMPUS responds to Shenzhen factory closures: digital camera market shrank


In May 7th, OLYMPUS announced a shutdown in a digital camera manufacturing plant in Shenzhen. The company is called OLYMPUS (Shenzhen) Industrial Co., Ltd. (OLYMPUS Shenzhen factory), mainly engaged in the production of digital camera related products. OLYMPUS confirmed that the Shenzhen factory had stopped working in May 7th, and the expected cost is now being scrutinized and is expected to be announced at the time of the final accounts of the March 2018 period in May 11th. In view of the above, OLYMPUS decided to stop the production of the Shenzhen plant, focusing its production on OlympusVietnamCo., Ltd. (OLYMPUS Vietnam), in Vietnam, Ni, in order to improve production efficiency and profitability, and to enhance the international competitiveness of the digital camera business. However, OLYMPUS (Shenzhen) Industry Co., Ltd. had about 15000 people at its heyday, not only the headquarters of OLYMPUS Asia Pacific region, but also one of the largest cameras and parts production bases in the group. At that time, a division of labor was set up in Shenzhen. But when smart phones are becoming more powerful, the market for ordinary card machines is getting smaller and smaller. Nikon, OLYMPUS and other manufacturers are powerless under the impact of smart phones, and have shut down some factories in succession. Digital camera industry subverted by mobile phones OLYMPUS Shenzhen factory chairman and general manager Komatsu wrote that in 2002, in the wave of rapid development of the silver salt film camera to the digital camera, the Shenzhen factory also quickly transferred the business center to the digital camera and established 1 million P9106 months of the digital camera lens. The system has grown into a factory with more than 12000 employees. However, since 2008, with the popularity of smartphones, the size of the digital camera market has gradually shrunk, and the Shenzhen factory, the main factory, has fallen to 20% in the vertex period. As a new business, the export business of the income generating pillar is also accompanied by technological innovation into the time of product renewal, and many models terminated in 2017. In addition, Komatsu also mentioned that the Shenzhen factory has been 24 years since it was put into operation. At present, the equipment is aging and the export business has no room for development, so the decision to stop production and stop work is made. OLYMPUS said that, under the impact of macro - economic factors such as the shrinking of the worlds camera market and the change of Chinas social and economic environment, the companys business prospects are grim and business adjustment has to be made within the group. It was Japanese Nikon that decided to make the factory ahead of schedule in advance of OLYMPUS. In October 30, 2017, Nikon announced the closure of its digital camera factory in Wuxi. The company will stop operating activities of Nikon optical instrument (China) Co., Ltd., a subsidiary of Wuxi. The reason for Nikons shutdown is also due to the rapid development of smartphones, and the market for small digital cameras is shrinking dramatically. Nikon said that the market of card digital cameras is shrinking rapidly due to the popularity of smart phones. Nikons responsible person revealed that the sales of card digital cameras dropped by 68% from 2012 to 2016, which was only 30% in Wuxis factory. Obviously, such a start-up rate can not support the continuous operation of the factory. According to the announcement by Nikon China, the operation of the Nikon optical instrument (China) Co., Ltd., a subsidiary of Wuxi City, will be stopped at the same time, the factory responsible for the production of Nikon digital cameras and digital camera accessories will also be stopped. The latest data from the Japanese camera image Machine Industry Association (CIPA) in February 1, 2018 showed that Japans domestic camera manufacturers shipped a total of about 24 million 980 thousand digital cameras in 2017, up 3.3% from a year earlier, a 7 year increase in global shipments of digital cameras. The chart drawn by Statista, a market research firm based on CIPA data, shows that the digital camera industry has been in recession since 2010. In recent years, smart phones have adopted dual cameras and other new photography technologies, which have begun to take the place of the card SLR. In addition, with the improvement of smart phone algorithm, we can take the effect of SLR, which will also impact the sales of SLR cameras. Capacity transfer in Southeast Asia According to the securities times network, there are currently three major businesses in OLYMPUS Shenzhen factory, namely, cameras, cars and microscopes. The camera business will be transferred to Vietnam; the vehicle business is uncertain and may not be done; the microscope business, the high-end move back to Japan, and the rest of the business to OLYMPUS (Guangzhou) industry limited. The transfer of foreign factories from China to Southeast Asia is no longer an example of OLYMPUS. At the beginning of 2017, the hard disk manufacturer Seagate Suzhou factory announced the dissolution, and Seagate turned its capacity to Southeast Asia. Public information shows that Seagate launched the expansion plan of Nakhon Ratchasima Kh factory in Thailand in 2015, investing 470 million US dollars to expand its capacity by half and increase 2500 employees. Before Nikon announced the closure of the Wuxi plant, it planned to improve its revenue through outsourcing production. It is reported that Nikon also chose to outsource factories in Southeast Asia. The source of this article: surging news editor: Li Tian Yi _NN7528 According to the securities times network, there are currently three major businesses in OLYMPUS Shenzhen factory, namely, cameras, cars and microscopes. The camera business will be transferred to Vietnam; the vehicle business is uncertain and may not be done; the microscope business, the high-end move back to Japan, and the rest of the business to OLYMPUS (Guangzhou) industry limited. The transfer of foreign factories from China to Southeast Asia is no longer an example of OLYMPUS. At the beginning of 2017, the hard disk manufacturer Seagate Suzhou factory announced the dissolution, and Seagate turned its capacity to Southeast Asia. Public information shows that Seagate launched the expansion plan of Nakhon Ratchasima Kh factory in Thailand in 2015, investing 470 million US dollars to expand its capacity by half and increase 2500 employees. Before Nikon announced the closure of the Wuxi plant, it planned to improve its revenue through outsourcing production. It is reported that Nikon also chose to outsource factories in Southeast Asia.