Nikon Closes Digicam Factory in China
Nikon today announced that operations of their consolidated subsidiary Nikon Imaging China (NIC) will be discontinued. In practice, this means the closure of a factory in Wuxi City, Jiangsu Province, which used to manufacture digital compact cameras, as well as lens units. Nikon says, "due to the rise of smartphones, the compact digital camera market has been shrinking rapidly, leading to a significant decrease in operating rate at NIC and creating a difficult business environment." In future, the Nikon will focus more on high value-added products - which probably means DSLR cameras, flashguns and interchangeable Nikkor lenses. The closure of the Wuxi City plant is effective today. Nikon Imaging (China) Sales Co., Ltd. (NICS), the company’s sales subsidiary in Shanghai, continues in full operation as normal.
Nikon Press Release
Nikon to Discontinue Operations of a Consolidated Chinese Manufacturing Subsidiary of Imaging Business
Nikon Corporation (the “Company”) has announced at the Board of Directors’ Meeting held today the resolution
that operations of consolidated subsidiary Nikon Imaging (China) Co., Ltd. will be discontinued.
1. Reason for Discontinued Operations
Nikon Imaging (China) Co., Ltd. (NIC) was established in June, 2002 in Wuxi City, Jiangsu Province, China, and manufactured digital cameras and lens units for digital cameras. In recent years, however, due to the rise of smartphones, the compact digital camera market has been shrinking rapidly, leading to a significant decrease in operating rate at NIC and creating a difficult business environment.
In this context, the Company conducted rounds of thorough reviews and discussions on the global manufacturing structure optimization measures stated in the company-wide restructuring plan announced by the Company in November 2016. The Company has decided to discontinue operations of NIC. Thereafter, we will begin conducting relevant dissolution and liquidation procedures of NIC. Specific details will be notified separately according to the decision.
As part of restructuring the Imaging Products Business, the Company will focus more on high value-add products. China’s position as one of the most important markets in the world will remain unchanged. Nikon Imaging (China) Sales Co., Ltd. (NICS), the Company’s sales subsidiary in Shanghai, continues in full operation as normal, contributes to photo and imaging culture development, and strengthens the sales effort of imaging products and the after-sale services in China that meet customers’ satisfaction.
Moreover, besides NIC, the rest of the Company’s manufacturing and sales subsidiaries in China remain in full operation, and continue proactively developing business and services in China.
2. Overview of Nikon Imaging (China) Co., Ltd.
3. Schedule of Discontinued Operations
On October 30, 2017, the Company made a board resolution to discontinue operations of NIC. On the same day, NIC will discontinue its operations.
4. Impact on Business Results
The expenses related to the discontinued operations of the consolidated subsidiary in this fiscal year are expected to be approximately 7 billion Yen (including tax expense) on current estimate.
The impact on the Company’s financial results for the fiscal year ending March 31, 2018 is currently under examination, and we will publish at the announcement of our consolidated financial results of the 2nd quarter for the fiscal year ending March 31, 2018, scheduled on November 7, 2017