Despite U.S. Tariffs, Ricoh to Open New Manufacturing in China

Back in May 2019, Ricoh Company of Japan announced it would be shifting  production of its key MFP portfolio destined for the U.S. market to Thailand, in order to “hedge any risk associated with the US-China trade issue.”

However, it appears the company will still continue to manufacture some printers and MFPs in China, stating today that its new manufacturing organization, Ricoh Manufacturing (China) Ltd., will begin operating this April.

According to the firm, it established Ricoh Manufacturing (China) as part of its strategy to strengthen its global production capability. As a central production site for Ricoh’s office-printing machines, Ricoh says the new company “will also contribute to further enhancing our accuracy of production planning by using advanced analytics of sales and production data through the IoT (Internet of Things), and installing cutting-edge robots and factory automation to enhance our manufacturing process.”

Additionally, it says “by unifying production data and data from the office machines operating at our customer’s locations, we will also be able to further enhance the machines’ quality.”

The new manufacturing site will work to reduce CO2 emissions with solar-powered equipment, replacement ventilation and air conditioning systems, natural lighting and natural ventilation to support a “de-carbonized society.” A CERTIFICATION OF GREEN BUILDING DESIGN LABEL “3 stars”, the highest level of the certification,” is scheduled to be obtained in April 2020.

With the start of production at the new manufacturing organization, existing production sites in China will be reorganized. Production at Ricoh Asia Industry (Shenzhen) Ltd. will end in the spring of 2020 and production at Ricoh Components & Products (Shenzhen) Ltd. will end in the fall of 2020.

Ricoh also says it will strengthen parallel production of MFPs  in cooperation with Ricoh Manufacturing (Thailand). This is a centralized mass production site in the Asian region that supports the construction of “optimal supply chains to meet customer needs.”

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