To further expand business operations in the global market, Fuji Xerox Co., Ltd. will establish a new manufacturing site—Fuji Xerox Hai Phong Co., Ltd.— in the Vietnam Singapore Industrial Park in Hai Phong, a city in northern Vietnam. Construction of the facility will begin in December 2012 and the operation will start in November 2013. The total amount of investment in this project is approximately 9 billion yen.
It will mainly manufacture products such as digital color multifunction devices and small-sized light-emitting diode (LED) printers, and the manufacturing capacity will be around two million units per year. It will also manufacture components for these devices such as printed wiring boards and drum cartridge components.
With the establishment of the new site, Fuji Xerox is aiming to increase manufacturing capacity, while avoiding overconcentration at its other existing manufacturing sites in China—where approximately 90 percent of its products such as digital color multifunction devices and small-sized LED printers are manufactured at its two manufacturing sitesNote1 —to meet the needs of the Asia-Pacific, European, U.S. and emerging countries' markets in which further market growth are expected in the future.
The company will manufacture highly competitive products for these growing markets by enhancing manufacturing efficiency through vertical integration of components manufacturing and the product assembly lines, while also striving to reduce costs by expanding component procurement sources throughout Asia.
In addition, Fuji Xerox will make efforts to standardize the manufacturing line equipments and tools with its other manufacturing sites to establish a company-wide decentralized manufacturing system. The company will also promote manufacturing platforms that will enable the manufacturing of different models on a same manufacturing line, thereby curtailing the total cost.
Among Asian countries, Fuji Xerox chose Vietnam as the location of its new manufacturing site because Vietnam has been making steady progress toward industrialization. The country is advantageous as it has industries such as information equipment manufacturers in a concentrated manner, as well as an extensive land transportation network connecting the country with China, Thailand and other Association of Southeast Asian Nations (ASEAN), which will facilitate Fuji Xerox in establishing supply chains.
Moreover, Hai Phong is the third largest city in Vietnam and the biggest port in northern Vietnam. Further growth is expected for the city as urban development projects are currently under way to make it as an industrial district.