Ricoh to Shift MFP Production from China to Avoid US Tariff

Ricoh to Shift MFP Production from China to Avoid US Tariff

According to Nikkei Asia, Ricoh is planning to relocate part of its multifunction printer (MFP) production from China to Thailand. This move is aimed at avoiding a potential 60% tariff on Chinese imports that incoming U.S. President Donald Trump proposed during his election campaign. Ricoh’s U.S. sales currently make up 20% of its global revenue.

Citing sources familiar with the matter, Ricoh plans to transfer the manufacturing of A4 multifunction printers and other models from its factories in Shanghai and Dongguan to Thailand. While these printers are being redirected for sale in the U.S., products still manufactured in China will be exported to other markets, such as Japan and Europe.

The company has already been producing A3 multifunction devices for the North American market at its facilities in Thailand since 2019. Ricoh is also evaluating the possibility of utilizing other bases in Southeast Asia and leveraging its joint ventures with Toshiba Tec for further production adjustments.

In anticipation of potential tariff impositions, Ricoh is expediting shipments of its Chinese-made products to North America. As a result, the company’s inventories could increase by 1 billion to 2 billion yen by the end of the fiscal year in March.

Ricoh is not the only company contemplating a shift in production from China to other countries. Earlier in August, reports suggested that HP was considering relocating half of its PC production from China to mitigate geopolitical risks. Similarly, Konica Minolta announced in the same month its decision to terminate production in Wuxi, China, and relocate production to sites elsewhere to enhance supply chain stability.

This strategic move demonstrates Ricoh’s proactive approach to addressing uncertainties in the global trade environment while capitalizing on the growing economic potential of Southeast Asia and North America.

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