OSAKA -- Noritsu Koki Co. said Thursday it will set up a wholly owned subsidiary and plant in Shanghai to start making "minilab" photo processing laboratory systems in October.
The plant will be able to make minilabs at a lower cost due to increased local procurement and will give Noritsu a competitive edge in the Chinese market, the Wakayama-based company said.
Noritsu (Shanghai) Electronics Equipment Manufacturing Co. will be capitalized at 1.2 billion yen and will employ 217 local people. A total of 14 Noritsu staff will be sent to the subsidiary.
The plant will have a production capacity of 150 minilabs a month. The sales target for fiscal 2002 is set at around 3.4 billion yen.
A factory was set up by Noritsu in Shanghai in 1998 but it is currently only assembling parts.
"Consumption of camera film in China has increased to 170 million rolls a year. We decided to set up a full-fledged factory amid prospects that minilabs will see growing demand," the company said in a news release.