Canon considering closing Chinese factory

Canon is considering shuttering production at its Zhuhai plant in southern mainland China, with the camera manufacturer citing the continued contraction of the camera market, COVID-19, and the ongoing chip shortage as factors.

Opened in 1991, the Zhuhai plant is Canon’s only factory in mainland China manufacturing digital cameras. According to YMCinema, 1,317 employees worked at the factory in late 2020. 

In an announcement, Canon China public relations department representative Shen Yue said that operations were facing 'difficulties'. 

“Despite the joint efforts of the company and all employees, it has failed to reverse the situation,” he said.

“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” he states. 

in a statement to PetaPixel, Canon said "It is true that manufacturing at Canon Zhuhai will cease. With the guidance of the Zhuhai city government and High-Tech Zone authorities, discussions are currently underway with Canon Zhuhai employees, suppliers, and other affiliated parties. As these discussions are currently in progress, we cannot yet disclose any information. Further announcements will be made if and when deemed necessary."

The Chinese government's offical masthead, the Global Times, cited the popularity of smartphones in recent years as a major reason the factory has been sluggish, despite $220 million invested into the factory by the end of 2020. It is expected that if the factory closure does go ahead as planned, production would be absorbed into Canon's existing factories in Japan and Taiwan.