Nikon Reliance on China Increases

It looks like Nikon will be sourcing more parts from China for its current and future digital cameras. By establishing Nikon International Trading (Shenzhen) Co., Ltd in China in March 2007, China will become a major supplier of parts and components for imaging products, including digital cameras, with improved quality control and more timely delivery. Operations will commence on April 1, 2007.

The International Procurement Office, established as a part of Nikon Hong Kong Ltd. in 1998, has played a role in Nikon's procurement strategy to expand its business steadily. Nikon foresees the need for improved management of an increasing number of parts procured in China, as well as increased quality assurance and improved delivery times as part of their imaging business production strategy.

It is for these reasons that Nikon has established this wholly owned international procurement subsidiary as a base for procurement operations in China.

According to Nikon management, the establishment of the local Chinese subsidiary will help to advance their production strategy, allowing them to provide high-quality products that respond even better to the users' needs, thus enhancing Nikon's already significant market presence.

Company Overview

Name Nikon International Trading (Shenzhen) Co., Ltd.

Address 7th Floor, Tower A, Shenzhen Zhongtianyuan Logistics Centre
Taohua Rd., Futian Free Trade Zone, Shenzhen 518038, China

Capital US$500,000 (approx. ¥55,000,000; 100% from Nikon Corporation)

Representative Yasuaki Ishiguro, Director & General Manager

Employees Approximately 35 at outset

Primary operations Procurement and wholesale of parts and components for imaging products, testing and inspection of products, parts, and components, and technical guidance