Canon 2005 Annual Report Download - page 21

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19
the in-house production of manufactur-
ing equipment and molds, accumulate a
greater wealth of production engineer-
ing technologies, establish exclusive
production methods and reinforce
product competitiveness.
As a central means of reducing costs,
Canon has been undertaking procure-
ment reforms. We are moving ahead
with efforts to concentrate and consoli-
date our suppliers and establish a net-
work system that links together global
procurement records and parts informa-
tion, making possible the sharing of up-
to-date information. Canon also adheres
to a policy of Green Procurement, striving
to purchase environmentally friendly
parts and materials.
Increasing Production Capacity
Canon is stepping up production capacity
in order to meet growing demand. At
Oita Canon Inc. in Japan, we will begin
construction of new facilities for the
production of interchangeable lenses for
single lens reflex (SLR) cameras, aiming
to fully integrate camera-manufacturing
operations. We also plan to complete
construction of a second facility at Oita
Canon Materials in December 2006,
where we will begin manufacturing
toner and toner cartridges, as well as
printer heads and inkjet cartridges for
inkjet printers. In addition, Canon
completed construction of a new plant
at Utsunomiya, Japan in November 2005
for the manufacturing of lenses.
Looking globally, Canon Vietnam
Co., Ltd. completed construction of its
second plant at the Que Vo Industrial
Zone and commenced operations from
April 2006 to increase production capac-
ity of laser beam printers (LBPs). Canon
Vietnam will also begin construction of
its third plant in order to expand produc-
tion capacity for inkjet printers.
Cell production of inkjet printers at Canon Vietnam, expanded in 2005, is running at full capacity,
and construction of a third plant is underway to increase production
Toner cartridge production
at Canon Virginia
Oita Canon realizes the ultimate in flexible
production for Canon’s digital cameras