Nikon Shrinks China Manufacturing Under Pressure from Smart Phones
Nikon China announced it will close Nikon Imaging (China) Co, Ltd, ending one of its manufacturing operations in China.
The official announcement follows below:
Nikon reached the decision to suspend Nikon Imaging (China) during a board meeting on October 30.
Reasons for Closure
Since its establishment in Wuxi, Jiangsu province in June 2002, Nikon Imaging (China) Co, Ltd (NIC) has been a manufacturer of digital cameras and components. However, the overwhelming popularity of smartphones has reduced the market for compact digital cameras. NIC’s production has fallen far below capacity, making it difficult to continue operating.
In light of the facts, Nikon developed a restructuring plan to optimize its global production system in November 2016. The decision to suspend NIC followed thoughtful analyses and discussions. Nikon will go through the relevant procedures of dissolution and liquidation. Other relevant details will be released according to the resolution.
NIC will invest more in products with higher additional values. China will remain one of the most important markets in the world. Nikon Imaging (China) Sales Co, Ltd (NICS), a subsidiary in Shanghai, will continue to provide sales and after-sales services to satisfy Nikon’s customers and contribute to the camera manufacturing industry in China.
Aside from NIC, Nikon’s other factories and sales subsidiaries in China will continue their operations and further improve their services in China.
The official announcement makes it clear that Nikon’s decision to close NIC will not affect its other manufacturing and sales operations. It remains unclear whether the D5600 and Nikkor 105mm f/1.4 lens made in China will be affected or not.