Clover Closes Operations in Asia Pacific

Clover Closes Operations in Asia Pacific

CIGroup Asia has decided to cease remanufacturing and sales in the APAC region effective June 15, 2022.

The announcement by Managing Director Robert Ross on April 30, was sent out from the Group’s remanufacturing factory and offices in Ho Chi Minh City in Vietnam.

“Apart from an ongoing decline in demand for toner products sourcing parts has become increasingly difficult and expensive, rendering the local operation unviable,” said Ross.

According to Ross, a combination of factors including disruptions to supplies of raw materials, dramatic increases in freight costs brought on by COVID-19 and deteriorating market demand for toner in the APAC region had led to this difficult commercial decision.

There had been a management buy-out back in December 2019 where the CI Group Asia took over operations in Vietnam and in Australia from the larger Clover Imaging group. Clover had previously closed its Melbourne warehouse in 2018 and started shipping remanufactured cartridges from Vietnam for their big customers in Australia.

One of CI Group Asia’s clients told RT Media, “I went to the factory a few years ago, and was very impressed with their operations. Since then they revamped the company and put a lot more money into upgrading it. So I am shocked to hear of it’s going.”

Yet another Australian client commented, “The product was always the best quality with the lowest failure rates.” He added this closure could be a big win for the OEMs and that there is no longer any aftermarket alternative supplier to Chinese products available.

Editor: On May 11, yet another Australian client advised RT Media that the factory in Vietnam will not close, but all of the remanufacturing of printer cartridges will be relocated to Clover’s factory in Mexico which has the capacity following a global decline in demand thanks to the global pandemic. Distributors in Australia will be required to get their remanufactured products from Mexico.

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