Olympus will close down its production facility in China and relocate its camera manufacturing to Vietnam, the company’s head office has announced.
Olympus Japan made the announcement that it will close its Shenzhen factory as of today, 7 May 2018, following a resolution of the company’s board of directors. Olympus will now consolidate its operations at its sister facility in Vietnam.
According to its statement to the press, the reason for the move is one of downsizing, as the digital camera market has shrunk in the wake of the rise of smartphones. The statement reads (according to a Google translation):
May 7, 2018
Company name Olympus Corporation
Representative name Representative director and president and executive officer Hirosue Sasa
(Code: 7733, TSE First Section)
Inquiries: PR & IR General Manager Takaaki Sakurai
Notice concerning shutdown of consolidated subsidiary (China production subsidiary of image business)
At the Board of Directors’ meeting held today, the Company owned Olympus (Shenzhen) Co., Ltd. located in Shenzhen, China,
We announced that it has decided to stop the operation of Industrial Ltd. (OSZ) hereafter.
1. Reason for shutdown
In December 1991, we established OSZ in Shenzhen, China and manufacture digital camera business related products
came. However, with the spread of smartphones, the digital camera market has shrunk sharply,
Occupancy rate of OSZ remarkably declined, and 26 years passed since the establishment, equipment became more aged, maintaining the competitiveness of OSZ
It is extremely difficult to hold.
Until now, we have been developing OSZ and Olympus
We have been producing at two sites of Vietnam Co., Ltd. (hereinafter referred to as “Olympus Vietnam”),
In view of the above situation, we decided to stop operating OSZ and consolidate production into Olympus Vietnam
It was. As a result, we will improve production efficiency and profitability, strengthen global competitiveness of the digital camera business
Olympus says it expects to incur some temporary expenses as a result of the shutdown, but it’s nothing that should impact the company’s overall performance.
Via Photo Rumors