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Canon Cut Production At Chinese Factory, Considers Full Shutdown

Image Sensor Canon Eos R

Canon has cut production at one of their factories in China, citing shrinking demand in the digital camera market, continued fallout from the coronavirus and chip shortages as a reason.

According to the South China Morning Post, Canon cut down production at its Zhuhai factory in southern China. The company is currently considering a full shutdown of the factory.

Japanese optical product maker Canon will close part of its Zhuhai factory in southern China, with a full shutdown of the 32-year plant being considered, due to shrinking demand in the digital camera market and continued fallout from the coronavirus.

Rumours about the closure of the entire facility in Guangdong province started on Thursday with an internal company letter circulating online

The announcement, which was issued on Wednesday, said that “the operation of the company is facing unprecedented difficulties. Despite the joint efforts of the company and all employees, it has failed to reverse the situation.

“The headquarters has to adjust the overall operation structure of the group. After careful consideration, a difficult decision has to be made: to terminate the company’s production.”

It is not yet clear if the 1317 employees at the Zhuhai facility will lose their job or get relocated. Moreover, Canon seems not to be the only big company which is cutting production in the area.

Canon’s looming departure from Zhuhai follows several other multinational enterprises relocating their production bases in China to Southeast Asia or back to their home countries in recent years due to rising labour costs and concerns over supply chain security.

Let’s hope all these people doesn’t get fired. Thanks Amitzi for the tip.

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