facebook
twitter
rss
account
search
search
 

Canon to increase domestic production

Jan. 29, 2014 at 7:55 AM   |   Comments

TOKYO, Jan. 29 (UPI) -- Japanese camera and office equipment giant Canon Inc. said it planned to increase domestic production to take advantage of a weaker yen.

Canon Chief Financial Officer Toshizo Tanaka said Wednesday that there were two reasons for the company to move production back to Japan, the Wall Street Journal reported.

"Abenomics is working well," he said, referring to Prime Minister Shinzo Abe, who has pressed for fiscal stimulus that has weakened the yen, making currency rates more advantageous for exporters.

Tanaka said Canon executives have concluded "the foreign currency rate won't fluctuate widely from the current levels for at least the next several years."

In addition, Tanaka said that rising wages in other Asian countries was reducing the advantage of outsourcing work outside of Japan.

Canon said it would increase production to 50 percent of the company's output by 2015, the Journal said.

The current rate of Canon's production that is domestic is 43 percent. It has been below 50 percent since 2011, the Journal reported.

Topics: Shinzo Abe
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Most Popular
1
Tony Hayward: Kurdish oil sector open for business Tony Hayward: Kurdish oil sector open for business
2
Textron's G-CLAW on target in live-fire demonstration Textron's G-CLAW on target in live-fire demonstration
3
E-3 Sentry aircraft tipped for digital cockpit, avionic systems makeover E-3 Sentry aircraft tipped for digital cockpit, avionic systems makeover
4
$3 gas could make a comeback $3 gas could make a comeback
5
Starbucks testing smaller Frappuccinos Starbucks testing smaller Frappuccinos
Trending News
Video
x
Feedback