Fuji Xerox To Invest Y36 Billion Over 3 Yrs To Boost China Sales
Sunday March 23, 9:55 pm ET
TOKYO -(Dow Jones)- Fuji Xerox Co. plans to invest a total of Y36 billion over the next three years to expand its sales and service operations in China, a company spokesman said Monday.
The Japanese precision equipment maker will also transfer in April its headquarters for overseas business in the Asia-Pacific region from Tokyo to Shanghai. The region includes China, South Korea, Taiwan, Southeast Asia and Australia but excludes Japan.
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"This is based on our overseas business strategy to focus most on our Chinese operations," said the spokesman in Tokyo.
Most of Tokyo staff at the Asia-Pacific headquarters will move to Shanghai.
The move is in line with other Japanese makers of copiers and printers to strengthen not only production operations but sales operations in China, where spending power is growing rapidly.
Fuji Xerox, a joint venture by Fuji Photo Film Co. (FUJIY or 4901) of Japan and Xerox Corp. (NYSE:XRX - News) of the U.S., aims to double its copier sales in China to Y60 billion in the year starting April, 2005.
Fuji Xerox also aims to boost its overseas sales from the current Y140 billion to Y210 billion in the year starting April, 2005. It now generates group sales of about Y1 trillion.
Under its investment plan for China, the company will set up direct sales bases in nine cities, as well as offices for direct after-sales services in 12 cities.
In line with these steps, Fuji Xerox plans to double the number of its local staff to 1,300 in the year starting April, 2005, it said.
Fuji Xerox is an unlisted company employing 14,463 as of Dec. 31, 2002. Fuji Photo has a 75% stake in Fuji Xerox, while Xerox has the remaining 25%.
-By Kanji Ishibashi, Dow Jones Newswires; 813-5255-2929; kanji.ishibashi@dowjones.com
-Edited by Bennett Richardson
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