Canon Beefs up Laser Toner production November 29, 2007 14:33 by John Sollars

Canon Inc, a leading printer and copier maker, said on Thursday it would spend 140 billion yen (£750 Million) to boost its capacity to make toner cartridges in light of robust demand for laser printers.

Consumable items such as toner and related services are an important source of profit for office equipment makers as they generally fetch high margins and provide a constant revenue stream.

Canon does not disclose sales of its toner cartridges, but its laser printer-related revenues, which include toner cartridge sales, totalled 1 trillion yen in calendar 2006, accounting for roughly one quarter of its total sales.

The Tokyo-based company, said it would invest 80 billion yen to build a new plant in Hita in Oita prefecture on the southern island of Kyushu by September 2009.

Canon plans to spend another 60 billion yen to lift output capacity at an existing factory in Oita city.