MENAFN reports that Seiko Epson of Japan may be moving more of its manufacturing to Europe, as it seeks to minimize the effects of currency fluctuations and also obtain closer proximity to new customers and R&D talent.
Epson already has a manufacturing location in #Italy and may move more manufacturing and design operations to Europe to counteract the effects of a stronger yen, Epson President Minoru Usui said. Usui said Epson’s textile-printing operations in #Italy will serve as an example of his template for boosting profitability.
“In the future it might be advantageous for us to produce close to the main markets, for example in Europe, Usui said in an interview. ‘We’re quite heavily exposed to yen fluctuations. Creating product design functions in Europe, Asia, perhaps R & D in America – that’s the direction I want to take the company in, gradually reducing the weight in Japan.”
The #EuropeanUnion and individual countries are promoting manufacturing and R & D incentives for Asian manufacturers to move operations to the region.
Taiwanese contract manufacturer Hon Hai Precision Industry – otherwise known as Foxconn – is also said to be investing 100mn through next year to expand and build new R & D and design centers in the Czech Republic.
Usui said he wants to use a pair of recent acquisitions in #Italy that provide printing on clothing for the Milanese fashion industry as a model for moving more production, design, sales, and service to Europe, functions that were previously located in Japan.
“Over time we will gradually shift to more localization,” he said.
Epson’s current financial plan includes boosting profits to ¥200bn and sales to ¥1.7tn (15.4bn), up from ¥1.09tn last year.
The Japanese yen has risen 4.53 percent against the euro over the past year, minimizing profits for many Japanese companies. Epson is said to obtain only about a quarter of its revenue in Japan. Sales and support for businesses could also move to Europe or other venues, said Usui,.
Epson acquired two textile printing and service companies in #Italy in the past two years, and opened a research and development facility in Como, Italy, as it seeks to expand into color-inkjet high-fashion textile printing. It’s also said to be seeking to expand into mass-market clothing printing.
In November 2015, “Epson announced a European investment plan targeting 25-percent regional sales growth in part by opening offices in Berlin, Munich, Lisbon, and Madrid. The Japanese company also has ink cartridge factory in Telford, UK.”
- April 2016: Epson Has Sold over 20 Million Ink-Tank Inkjet Printers
- March 2017: Epson Announces 100-PPM A3 Business Inkjet Copier/MFP for BTA Channel
- March 2017: IDC: Small Increase in Global Printer and MFP Shipments in Fourth Quarter; Gains for HP, Epson
- February 2017: Epson Launching 100-PPM WorkForce Enterprise LX-10000F, 75-PPM LX-7000F A3 Color Inkjet MFPs
- February 2017: New Epson ‘Supertank’ Inkjet All-in-Ones Feature up to Two Years Worth of Ink
- February 2017: Revenues, Profits, Decline for Epson, but High-Capactiy Ink-Tank Printers’ Revenues Expand
- November 2016: New Epson Factory in Japan to Triple Epson’s Inkjet-Print-Head Manufacturing
- October 2016: Revenue, Profits Down Again for Epson’s Latest Quarter, Continues Focus on High-Capacity Ink Tanks
- August 2016: Epson Stumbles in Latest Fiscal Quarter, but Reports Increased Sales of High-Capacity Ink-Tank Printers
- August 2016: Two New ‘Supersize’ EcoTank Inkjet All-in-Ones from Epson, Including First Wide-Format ‘Supersize’ All-in-One