Hoya Corp. kept its Pentax camera factory in Tochigi Prefecture open as rivals steadily moved manufacturing overseas to cut costs, yet it couldn't compete as the yen surged against the dollar and euro during the global economic slump.
The company paid suppliers and workers in yen, sold products in dollars and euros, and converted revenue into yen. Six straight quarterly losses eventually prompted Hoya to close the last domestic Pentax plant in June as the yen rallied against the dollar.
"The rise in the yen is definitely one of the biggest triggers that convinced us to accelerate our move offshore," said Hiroshi Hamada, Hoya's chief operating officer. "There was no reason to keep high-cost manufacturing in Japan."