Japanese imaging technology giant Canon has closed a major printer production facility in mainland China due to shrinking market and competition from local brands. The Zhongshan plant, which employed over 1,000 workers, ceased operations on November 21, offering generous severance packages averaging 43 months’ salary. Recruiters are already targeting Canon’s skilled workforce.

The closure marks a turning point in Chinese manufacturing, where local brands have outpaced foreign rivals. Canon’s printing business, its largest revenue stream, is facing a downturn, with printer sales dropping 1% in the third quarter. Canon also shut down a digital camera factory in Zhuhai in 2022. The company operates other printing factories in China, Vietnam, and Thailand.

Canon’s production halt signifies a shift in China’s printing market, with local brands dominating over foreign competitors. Online shopping sites list Canon printers lower than Chinese brands like Huawei and Lenovo. The company’s future plans for other factories in China remain undisclosed. Canon’s struggle in China reflects broader challenges in the global printing industry.

Read more at Yahoo Finance: Canon closes China printer plant as Japanese brand loses to local rivals