Pentax 2012 Annual Report Download - page 57

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By seeking production efficiency and cost reduction, HOYA centralized a large
share of its production operations to overseas locations for each business
division, including eyeglass lens business. In contrast, this industry driven
strategy brings along a high level of business interruption risk due to potential
natural calamities, political unrest or other external factors. The unfortunate flood
event in Thailand offered a clear understanding for HOYA management team that
implementation of risk hedging structures and strategies must be accelerated.
Taking this experience as a lesson learned, HOYA refined its global production
strategy by setting the goal for a balanced, safe and stable supply chain, through
a well determined level of production decentralization. HOYA's eyeglass lens
division is the first of the group's divisions to implement this new direction as a
mandatory foundation for sustainable global growth.
In an ophthalmic eyeglass lens market valued globally at 12 Bill USD in year 2011
and growing between 1.5% to 2.0% yearly, HOYA as one of the key players in the
industry will continue its journey towards market leadership through ambitious
targets, aiming a yearly growth rate of at least 3 times higher than the market
growth, from FY 2013 onwards.