Canon Inc. will build a large-scale factory in the city of Oita, where it will manufacture cartridges and ink for use in printers and photocopiers, a Canon spokesman said Thursday.
Canon envisions launching operations at the plant around 2007, the spokesman said. Capital outlays for the factory are estimated at 80 billion yen, according to industry sources.
The company will announce the project Friday, together with representatives from the Oita Prefectural Government, the Canon spokesman said.
Canon has secured the land for the plant in an area adjacent to one of its existing plants, where it has been producing digital cameras and copiers.
The company decided to locate the new factory in Japan partly because the highly automated facilities it will employ will keep down personnel costs, the spokesman said.
Earlier in the day, a business daily reported that Canon had decided to make the components in Japan to prevent its technology from being obtained or pirated by foreign competitors.