Canon Inc. said Thursday it will invest ¥140 billion from now until 2009 to produce more toner cartridges used in printers and photocopiers as demand increases.
Japan's biggest office equipment maker will spend ¥80 billion to build a new factory in Hita, Oita Prefecture, and use the remaining amount to expand production capacity of existing plants, said spokesman Hiroshi Yoshinaga.
Canon expects combined sales of printers and photocopiers, which accounted for 63 percent of third-quarter revenue, to rise 11 percent this year on increased demand. The company, which expects an eighth year of record profit, said in September it will spend about ¥80 billion to build a toner cartridge factory in northern Japan.
"Demand for toner cartridges is increasing," Shigeo Kikuchi, an equity manager at Takagi Securities Co. in Tokyo, said by phone. "The move is positive for the company's earnings, as cartridges are highly profitable."