Nikon closes Chi­nese com­pact cam­era fac­tory

Kuwait Times - - Business -

TOKYO: Nikon said yes­ter­day it has ceased op­er­a­tions at a com­pact cam­era fac­tory in China, un­der­scor­ing how pic­ture-tak­ing smart­phones have dev­as­tated the mar­ket for dig­i­tal cam­eras. Tokyo-based Nikon, which is go­ing through a sweep­ing re­struc­tur­ing to re­pair its fi­nances, said it ended op­er­a­tions of Nikon Imag­ing (China) in east­ern Wuxi City, Jiangsu Prov­ince, which em­ployed nearly 2,300 peo­ple.

“In re­cent years...due to the rise of smart­phones, the com­pact dig­i­tal cam­era mar­ket has been shrink­ing rapidly, lead­ing to a sig­nif­i­cant de­crease in op­er­at­ing rate at NIC (Nikon Imag­ing China) and cre­at­ing a dif­fi­cult busi­ness en­vi­ron­ment,” Nikon said in a state­ment.

“The com­pany has de­cided to dis­con­tinue op­er­a­tions of NIC. There­after, we will be­gin con­duct­ing rel­e­vant dis­so­lu­tion and liq­ui­da­tion pro­ce­dures,” it added.

Nikon said it ex­pected the fac­tory clo­sure to cost around 7.0 bil­lion yen ($62 mil­lion), but added that China will re­main one of its key mar­kets. —AFP

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