Work on World's Largest Laser Printer Factory Kicked off in Vietnam

Work on World's Largest Laser Printer Factory Kicked off in Vietnam

Canon Vietnam Co., an arm of Japan’s electronics giant Canon, yesterday began the construction of what will be the world’s largest laser printer factory in the Que Vo Industrial Park in the northern province of Bac Ninh.

The first phase of the factory, costing US$50 million, will have a designed capacity of producing 700,000 laser printers per month, equivalent to 80 per cent of Canon's current laser printer output. The first phase will recruit 3,000 workers.

When completed, the factory will be able to produce 8.5 million printers a year. All of the factory's products will be exported, meeting 35 per cent of the world demand.

The factory will supply monochrome laser printers priced at US$290 each. Part of the output will be sold to companies under original equipment manufacture contracts. Canon is supplying printers under the OEM mode for Hewlett Packard.

With the latest project, Canon has raised its investment capital in Vietnam to US$220 million.

Canon was licensed to build a US$31-million inkjet printer factory in Hanoi's Thang Long Industrial Park in 2001. It plans to invest US$100 million next year to expand the factory, raising its designed capacity from 600,000 to 1.2 million units per month.

As for the latest project, Canon Vietnam will be exempted from corporate income tax for the first four profit-making years and be offered a 50 per cent reduction over the subsequent nine years. The tax rate is 10 per cent.

Canon Vietnam reported to have secured total revenues of US$210 million in 2004, up 41.89 per cent against the previous year.

Vietnam & World Economy