In response to the deteriorating market environment, the well-known Japanese optical instrument manufacturer Canon has announced the cessation of operations at its factory in Zhongshan City, Guangdong Province, China.
Mainland and Taiwanese media reported on Wednesday (November 26) about the suspension of operations at Canon’s Zhongshan factory.
According to a Canon notice circulating online, in recent years, due to the rapid deterioration of the market environment, the laser beam printer (LBP) market has continued to shrink, and Chinese BP brands have rapidly emerged, leading to operational difficulties for the company. Despite various efforts to make adjustments, the situation could not be reversed. After careful consideration, the headquarters made the difficult decision to halt production and operation last Friday (21st).
Canon expressed regret and sadness over the impact closing the company would have on the lives and careers of its employees, stating, “We are deeply sorry and saddened.”
Canon has promised to handle all subsequent matters properly and to the maximum extent protect the legitimate rights and interests of its employees.
The notice also mentioned that efforts will be made to provide employees with solutions beyond the statutory standards.
Established in 2001, the Canon Zhongshan factory is a wholly foreign-owned enterprise invested and set up by Japan’s Canon Inc. in Zhongshan, Guangdong. Its main business is the production of color and monochrome laser printers. As of April 2022, the company had produced over 110 million copiers and printers.
The notice further stated that from Monday to Friday (November 24th to 28th), the company will be on temporary leave. During this period, the company will engage in negotiations with the labor union in accordance with the law. The company will consider the reasonable demands and opinions of the employees. After reaching a consensus through negotiation, the formal plan for terminating the labor relations will be officially determined.