Canon Considers Transferring Production out of China

Business Standard reports that with the escalating U.S.-China trade war, Canon Inc. of Tokyo, Japan, is conducting feasibility studies for possibly transfering some of its manufacturing out of China. Canon is examining the possibility of manufacturing in about 40 other countries, including India, in order to offset U.S. tariffs imposed on its products made in China and imported into the United States.

Kazutada Kobayashi, advisory director for Canon, told Business Standard: “We are conducting feasibility studies across the world in about 40 countries and are ready to set up new factories in some countries because U.S.-China relations might affect production or business; so we always need to be prepared.”

The studies will examine these countries’ infrastructure, labor quality, convenience, material supply, and other factors.

Canon has no definite plans to transfer manufacturing out of China, but is studying alternatives, and will make a decision based on how the U.S.-China trade war develops.

Aside from India, Canon is also studying possible manufacturing locations in South-East Asia, South America, West Asia, and Africa. It wants its manufacturing plants to be located around the world in order to mitigate risks such as tariffs.

Currently, Canon printers and copiers are being produced in China, Thailand, and the Philippines, so Canon can transfer production to Thailand and the Philippines in response to U.S. or Chinese tariffs.

According to Business Standard, Canon currently has four plants in China, as well as plants in more than 20 other countries.

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