Canon Zhuhai official announcement of the termination of production
Canon Zhuhai official announcement of the termination of production, January 13, an explosive news spread throughout the Pearl River Delta manufacturing industry, the Zhuhai High-tech Zone of a number of media, confirmed that in Zhuhai for 32 years of operation of the large factory Canon has been discontinued, the official announcement of the termination of the production of Canon Zhuhai company.
Canon Zhuhai official announcement of the termination of production 1Recently, Canon Zhuhai Limited (hereinafter referred to as "Canon Zhuhai") announced "the termination of the company's production". January 13, Guangdong Zhuhai High-tech Zone of a number of media confirmed that the development of the 32-year Canon Zhuhai has been suspended. Canon Zhuhai has ceased production for 32 years, and the enterprise is currently discussing with employees the disposal program.
Nandu reporter noted that due to the rise of smartphones, the digital camera market is rapidly compressed, the traditional camera giants are seeking transformation.
Source: Canon Zhuhai official website
Canon's 32-year old factory shut down
It is understood that Canon a **** there are seven production and maintenance bases of camera products, including four bases in Japan, and there are three overseas, respectively, in Taiwan, China, Zhuhai, China and Malaysia.
Official website information shows that Canon Zhuhai Ltd. was established in January 1990, when it was located in Zhuhai City, under the plate barrier mountain of Beiling, in 2013 moved to the Jinding Industrial Zone located in Zhuhai City High-tech Zone, with a total project investment of 1.5 billion yuan, covering an area of 200,000 square meters. Although Canon currently has branches in Dalian, Suzhou and Zhongshan, only Zhuhai mainly produces imaging products such as lenses, digital cameras and digital camcorders.
According to the 2020 annual environmental report released by Canon Zhuhai last December, the company's investment totaled $220 million as of the end of 2020, and in 2020, the driver produced 12.29 million lenses, 1,029,000 digital cameras, 94,000 digital camcorders, and 1,317 employees.
It is reported that Canon Zhuhai production of card digital cameras had accounted for half of Canon's global card digital camera sales. However, on January 12, Canon Zhuhai Co., Ltd. issued a letter to all employees, said that "because of the sharp contraction of the national camera market in recent years and the prolonged ravages of the new Crown Pneumonia virus, the company's operations are facing unprecedented difficulties, although by the company and all employees **** with the efforts, still failed to reverse the predicament, the headquarters after careful study, to make the difficult decision to terminate the company production. "
Some industry insiders believe that the closure of the plant means that Canon has moved camera production out of mainland China.
Digital Camera Market Shrinks, Mirrorless Cameras Become Mainstream
As cell phone manufacturers continue to improve their photography capabilities and co-brand with major well-known camera brands, the traditional camera market is shrinking. According to a report published by the Camera Imaging Products Industry Association (CIPA), global digital camera shipments in 2020 will be 8,886,000 units, a decline of 41.6% from 2019. While part of this stems from the epidemic affecting people's activities outside the home, looking back to its peak in 2010, the number had been more than ten times as high at 120 million units. To that point, global camera shipments began to plummet at a double-digit annual rate as smartphones became better at photography.
In 2017, Nikon made an announcement that it would cease operations at its subsidiary Nikon Optical Instruments (China) Co. in Wuxi, Jiangsu province, "as the market for compact digital cameras is shrinking dramatically due to the rise of smartphones."
In 2021, according to Japanese media reports, Nikon shut down 2 of its Japan-based Camera lens factories, Yamagata Prefecture, Nagai City and Fukushima Prefecture, only the two factories will stop production, only to retain the production of high-end NIKKOR lenses Nikon Tochigi Prefecture, Otaigahara City, factory, while the camera production business has also decided to move to Thailand.
However, in recent years, by the rise of social media, vlogs and other video media, mirrorless cameras have become the focus of camera manufacturers. The biggest difference between a mirrorless camera and a DSLR is that there is no mirror, so the body is greatly reduced, for example, the micro-single is a typical mirrorless camera.
CIPA data show that in 2020, the global DSLR camera shipments of 2.37 million units, a decline of 47%, while mirrorless camera shipments of 2.93 million units, a decline of 26%, mirrorless camera shipments in the market for the first time more than the DSLR camera.
Last December, Canon Chairman and CEO Fujio Mikado said in an interview with the Japanese media that "Canon will end the development and production of digital SLR cameras (including flagships) by shifting the production line to mirrorless systems only." Because "mirrorless cameras will become the mainstream of digital cameras".
Traditional camera giants are transforming for a way out
As an industry that has been developing for hundreds of years, most camera brands have a wide range of businesses. Canon, for example, the third quarter of 2021 turnover of 833.3 billion yen. Among them, the printing business field turnover of 459.2 billion yen, accounting for about 55%, the imaging business is 153.8 billion yen, accounting for about 18%, the medical business, industrial equipment and other products business field turnover are more than 100 billion yen.
Canon's group vision for 2021-2025 mentions that "imaging is the key to the future, and has begun to be applied to a wider range of fields than just cameras", and that in the future, in-car cameras, which will play an important role in autonomous driving, and "eyes" for robots, will play an important role in autonomous driving. "...... will contribute to the future by utilizing technologies such as optics, sensors, image processing, impact analysis, and networks. In addition, the B2B business is also Canon's future focus on the layout of the direction of its official website shows that China's industries are facing the urgent need for transformation and upgrading, "the future of Canon to achieve new breakthroughs in the office solutions, digital printing, security monitoring and medical equipment and other B2B areas, to help China's social development."
Another trapped in the profitability of the camera giant Nikon has also begun to seek a way out. 2021, Nikon announced to close to 10 billion yen (about $ 91 million), the acquisition of a majority stake in the U.S. startup Morf3D, which focuses on 3D printing, the layout of the digital manufacturing industry. Previously, Nikon invested $7.5 million in wrnch, a Canadian startup in computer vision and machine learning, and $25 million in Velodyne, a LiDAR company.
In 2019, after announcing the sale of its camera business, Olympus announced a new transformation program to a global medical technology company.
Fuji is also strengthening its healthcare footprint. Fuji announced that, starting in fiscal year 2021, the "health care and high-performance materials" business area into "health care" and "high-performance materials" two business areas to strengthen the health care business in the company's medium and long term. The healthcare business will play a leading role in the company's medium- and long-term development. Kenichi Tanaka, President of Fujifilm China, said in an interview with the media that the future business of Fujifilm China will be especially focused on developing the healthcare and high-performance materials markets.
In 2012, film giant Kodak filed for bankruptcy, announcing the official arrival of the digital age, yet to this day, films such as Kodak and Fuji still survive as niche hobbies. The emergence of smartphones has greatly impacted digital cameras, however, when photography enthusiasts begin to pursue better imaging results and experience, digital cameras are still irreplaceable.
Canon Zhuhai officially announced the termination of production 2
January 13, an explosive news spread throughout the Pearl River Delta manufacturing industry, the Zhuhai High-tech Zone, confirmed to a number of media, in Zhuhai, the operation of 32 years of large factories Canon has ceased production, and the enterprise is currently discussing with the staff of the severance program.
Too sudden
Canon Zhuhai blatantly shut down
A stamped Canon Zhuhai Ltd. announcement shows that, due to the sharp contraction of the global camera market in recent years, and the new Crown Pneumonia Virus ravaged the long term, the company is facing unprecedented difficulties. Although the company and the staff *** with efforts, still can not reverse the predicament, the headquarters after careful study, made a difficult decision to terminate the company's production.
Canon is one of the earliest of the world's top 500 companies to enter Zhuhai. in January 1990, a total investment of $ 25 million in Canon Zhuhai Ltd. was formally established, the first year's production value of only $ 1.5 million.
With China's economic take-off, coupled with a good investment environment in Zhuhai, Canon Zhuhai many times additional investment, more and more products began to be placed in the production of Canon Zhuhai: in October 1994, the laser printer (LBP) production began in September 1997, the camera production reached 10 million units, in June 2002, the color laser printer production began; in 2003, the beginning of the February digital camera production. June 2002, color laser printer production began; in February 2003, digital camera production began.
In February 2004, the former director of Canon Japan, Mr. Yoshio Yamashita, said that he would continue to expand production in Zhuhai, and that the scale of production and sales would be expanded from $600 million to $900 million, and that the number of people employed would be increased from 7,200 to 8,000 at that time.
In April 2006, the scale of laser printers reached 20 million units; in October 2006, the production of digital cameras reached 10 million units; in October 2007, the production of direct photo printers began.
Entry into China. During the first 18 years, Canon Zhuhai's investment increased nearly six-fold, and the total output value was an astonishingly huge increase of nearly 700 times, and Canon Zhuhai has become the largest production base of Canon Inc. outside of Japan.
After 2008
Rapidly slipping from the peak
However, with the introduction of the new labor law in 2008, the employee's awareness of their rights has risen, so that the original warm relationship between employers and employees has gradually frozen, and Canon Zhuhai has also quickly slipped from the peak.
On the afternoon of March 19, 2010, hundreds of Canon Zhuhai employees gathered at the factory's east entrance to go on strike, protesting against the company's disguised wage cuts. The reason was that after the Chinese government significantly increased the minimum wage, Canon split benefits such as provident fund, housing allowance, and contractual fee to fill in the basic salary, which triggered the employees' protest.
In September 2012, a strike by employees of Japanese companies triggered by the Diaoyu bird incident swept through almost all Japanese companies in mainland China, and Canon's Suzhou and Zhuhai factories were also severely affected. From that year on, Japanese companies stopped treating their employees as family and began a decade-long program of continuous layoffs.
By 2019, there were Zhuhai factory employees who posted videos showing that due to the inability to receive orders, the factory was almost invisible, employees were laid off by 70%, and even employee dormitories were rented out to college students in the neighborhood. There are also employees who show their paychecks saying that their wages in 2020 are not even as good as in 2012.
And by the end of 2020, the company's workforce had plummeted from a peak of more than 10,000 to 1,317 employees.
The Real Deal
Why is Canon not better?
It has to be recognized that Canon's decline and the replacement of digital cameras by cell phones has a direct causal relationship, but the east is not bright, the world's top 500 Canon business situation is actually very solid. According to the Canon Group released the 2021 third quarter financial data, the third quarter of 2021 group turnover of 833.3 billion yen, an increase of 9.8% year-on-year; to achieve a gross profit of 388 billion yen, an increase of 18.4% year-on-year, and net income soared 196.1% year-on-year.
In terms of specific business areas, Canon's printing business area achieved revenue of 459.2 billion yen, up 6.8% year-on-year; imaging business area achieved revenue of 153.8 billion yen, up 9.3% year-on-year; medical business area achieved revenue of 115.7 billion yen, up 9.8% year-on-year; and industrial equipment and other business areas achieved revenue of 130.4 billion yen, up 25.6%.
So the question is, since the camera orders are shrinking rapidly, why did not the Japanese factory in Zhuhai to other equipment, and did not close the Mayasia plant, but chose to close the Chinese factory after 10 years of continuous staff reduction?
As the saying goes, "the economic foundation determines the superstructure, politics is the continuation of the economy", since the 2012 Sino-Japanese relations suddenly turned, the withdrawal of Japanese enterprises on the agenda. From the 230-member Japanese economic delegation to China in September 2016 to visit China to request the Chinese government to set up a special window to simplify the procedures for the withdrawal of Japanese enterprises (capital), to April 2020, the Japanese government has allocated 14.2 billion yuan (220 billion yen) to help Japanese enterprises to migrate their production back to Japan, Zhuhai Canon of this day sooner or later to come.
The river goes east and does not return, these companies left and will not come back, but only hope that we can remember the good of these foreign companies, is that they provide capital, technology, equipment, management, and even orders, to help us from poverty and backwardness to liberate, and live a life of clothing and food.
According to people familiar with the matter, the employees' claim for severance compensation is 2.8N, much higher than the statutory standard of N+1, and the next step is to see how Canon takes it. Whether it is from the company's strong strength, or the past performance of Japanese companies to withdraw from the point of view, Zhuhai Canon will certainly be higher than N + 1 compensation for a decent exit.
Canon Zhuhai officially announced the termination of production 3"Canon, moving often."
Due to the sharp contraction of the global camera market, superimposed on the global epidemic, has been in Zhuhai for 32 years in the development of Canon Zhuhai Ltd. on January 12, a paper announcement, announced the "termination of the company's production" of the decision, the decision to cause a storm.
In today's era of the rapid rise of smartphones, Canon as a representative of the generation of digital cameras market is being rapidly compressed, the traditional camera giants are seeking transformation.
As one of the giants in the field of digital cameras, Canon*** has seven production and maintenance bases for camera products, of which, in addition to the four bases in Japan, the other three are located in Malaysia, Taiwan, and Zhuhai, China.
In 1990, Canon will be the production line of the camera settled in the town of Tangjiawan, Zhuhai, Guangdong Province, Jinding Jinhuan East Road, which is the earliest entry into Zhuhai, one of the Japanese wholly-owned enterprises. From lens grinding to camera assembly in one line, the peak of the Canon Zhuhai factory has nearly 10,000 employees, is also one of the most important overseas production base of Canon.
In the first decade of the 21st century, when smartphones were not yet on the rise, and most cell phones did not support camera functions, owning a digital camera was a fashionable trend, and Canon's compact and stylish IXUS series was a hit, and even led the development of the digital camera market for a time.
Canon's 2008 announcement showed that with the IXUS series and PowerShot series, Canon became the first manufacturer in the world to sell more than 100 million compact digital cameras. Card digital cameras produced by Canon Zhuhai accounted for half of Canon's global card digital camera sales.
Mobile phone manufacturers continue to improve photography features, and the traditional camera market has been continuously compressed. global digital camera shipments in 2020 were 8,886,000 units, a decline of 41.6% from 2019.
In 2017, Nikon announced that it stopped the operation of its subsidiary in Wuxi, Jiangsu Province; in 2021 according to Japanese media reports, Nikon closed 2 local Japanese camera lens factories, and the camera production business moved to Thailand.
Canon Zhuhai said in this announcement, "Due to the sharp contraction of the market, and the prolonged ravages of the new crown virus, the company is facing unprecedented difficulties. After the company and all employees *** with efforts, still can not reverse the predicament, the headquarters after careful study, made a difficult decision to terminate the company's production."
The closure of Canon's Zhuhai plant means that Canon is preparing to move camera production out of mainland China, and also represents a significant shrinkage in Canon's digital camera production.
Last December, Canon Zhuhai released its 2020 annual environmental report, and by the end of 2020, the company had invested a total of $220 million, and in 2020, it produced 12.29 million lenses, 1,029,000 digital cameras, 94,000 digital camcorders, and 1,317 employees.
This set of data, not to mention that it can not be compared with the peak, even compared with the data of previous years, it is also a comprehensive waist.
According to the Daily Economic News reported that the Canon Zhuhai plant is currently in a state of vacation, the employees have been aware of the plant to be closed, and are currently waiting for the severance compensation program in place.
14 afternoon, Canon (China) responded that the Zhuhai factory shut down small digital camera production line, there will be a small part of the parts production line. The above people also told reporters that in the Chinese market, Canon will still be the future of SLR and micro-single two hands.
Insiders revealed that in order to reverse the situation, Canon Zhuhai has tried to apply to the Japanese headquarters to open a more technological content of the micro-single and SLR production line, but was rejected.
Once an incomparably brilliant generation of digital camera giants, but now at the beginning of 2022 drew a gloomy end.