Konica Minolta to Transfer Production Site in Wuxi China

Konica Minolta to Transfer Production Site in Wuxi China

Konica Minolta announced that its Representative Executive Officer has decided to terminate production at its Chinese manufacturing subsidiary located in Wuxi.

The decision to move out from the Chinese production site is aligned with Konica Minolta’s medium-term business plan for manufacturing. In its Q1 financial report, the company mentioned that it is in the process of promoting automatic optimization of production conditions and prediction of parts inventories in response to environmental changes. This manufacturing strategy covers the Digital Workplace and Professional Print businesses, where Konica Minolta expects to implement human resources optimization in the U.S., Europe and Japan in the second half of the year.

The company started manufacturing in China in 1994 by establishing the first site in Dongguan. Another factory was set up in Wuxi in 2004 in line with the market growth. These two bases have been serving as one of the cornerstones in the global production. However, after examining the stability of supply chain and production in Wuxi production center, Konica Minolta finalized the decision to end production here and transfer it to other sites in Malaysia, Japan and Dongguan, China, which is slated to take place during the first half of 2025. Through this production transfer, the company expects to accelerate optimization of its production system while further strengthening the profitability in the Business Technologies Business.

For fiscal year 2024, Konica Minolta forecasts a loss of approximately JPY ￥6 billion (USD $0.29 billion), which was already included in the financial forecasts released previously.

Related:

• Konica Minolta Releases 2024 Q1 Results
• Konica Minolta & Fujifilm Sign Joint Venture Agreement
• Konica Minolta and Fujifilm Explore Potential Collaboration
• Konica Minolta Shares Jump on the Back of 2400 Job Cuts
• Konica Minolta Announced Financial Results for Q3

Comment:

Please leave your comment below about the news: Konica Minolta to Transfer Production Site in Wuxi China.