Friday, May 02, 2008

Canon Building a Toner Cartridge Plant in Virginia

Canon Inc. is a major player in digital devices in many countries. In fact, it is very successful in different countries in Asia and Canon Inc. (TYO:7751) has a strong presence in Europe too. Canon management are now thinking of making the best out of American market. So, they have decided to set up a toner cartridge plant in Virginia, USA. This move will make Canon products more competitive in the US market because the new plant will help to reduce the price of shipping Canon products to the US. Since, the products will be made in this plant in USA therefore Canon will be able to give the products at a cheaper rate than now.

The plant is expected to start production from next year and it will create nearly 700 jobs. This news was greeted well in Japan and the share of Canon got a boost after the news came in the media. I think that Canon bosses have taken a smart decision. The plant will cost investment of $570 million but it will help the company to compete against companies like with Xerox and Ricoh in the US market.

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