Situation of our production sites following the Great East Japan Earthquake and Tsuna

Art Post (Guest)

Situation of our production sites following the Great East Japan Earthquake and Tsunami

The following is a recovery forecast for our production sites in the affected areas of Tohoku and Kanto.

Ricoh Optical Industries Co., Ltd. (Hanamaki, Iwate), and Hasama Ricoh, Inc. (Tome, Miyagi)
Basic services infrastructure (electricity, gas, water supply) has almost recovered in the region. In our facilities there, we suffered some damage to plant equipment, though not major. Following inspections of the production facilities, some operations and shipping have already resumed. We are working hard to assure full recovery as soon as possible.

However, future operations may be affected by other factors such as the fuel supply situation.
Tohoku Ricoh Co., Ltd. - (Shibata-gun, Miyagi)
The situation is such that basic services have not yet been fully reestablished in the region. Moreover, as significant equipment damage has occurred, a full recovery will take some time.
At this time, depending on the production line in question, we estimate delays of anywhere from one week to two months before the line is available again. We continue to accelerate recovery at our facilities, while looking into the feasibility of alternative sites for partial production.

Ricoh Printing Systems, Ltd. (Hitachinaka, Ibaraki)
In this region, basic services infrastructure has largely recovered, but transportation is still not one hundred percent, and so only some employees are actually able to get to work. At this plant, damage to equipment is slight but there is some damage to the buildings, and our priority is ensuring safety. A few of the lines have already resumed operation but others will require between one and four weeks depending on the line.

In addition to the above, parts procurement and fuel shortages have had a knock on effect on full recovery of operations.
As for domestic production sites outside the affected areas, operation continues subject to procurement, as well as rotating power outages. These factors are affecting stable operation.
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3/25/1110:23 PM

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Art Post (Guest)

one week to 2 months at Tohoku!!

I'm thinking the one week is for hardware that's already manufactured. Duplicators are manufacturer here and maybe wide format, some beleive MP6001 and above are also here along with many accessories.

Tohoku is not about two hours or less travel time from Fukushima Nuclear Plant.

3/25/1110:27 PM

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Art Post (Guest)

We are continuing to get updates from Ricoh Company, Ltd. (RCL) on the impact of the earthquake and tsunami in Japan, and expect that it will continue to take time to assess. I did want to share some additional updates and also help address questions and concerns employees have been receiving from our customers.

I am including a link to a communication to all Ricoh Group employees and encourage you to read the latest update from Mr. Kondo, RCL's President and CEO. Much to our profound sorrow, the Ricoh Group has lost one employee and some relatives of employees while others are still missing. We extend our thoughts and prayers to our Ricoh family directly impacted by this loss. In his update, Mr. Kondo also shares his gratitude for the extensive support Japan is receiving from around the world, as well as how Ricoh is working to assure business continuity and reconstruction support activities.

Ricoh has also posted an update on the status of our production facilities on www.ricoh.com. As of March 25, some operations in the areas impacted have resumed. Ricoh Company, Ltd. is still assessing the impact to facilities and has not yet determined the length of suspension of operations in some facilities. We have confirmed some equipment and infrastructure damage to our manufacturing sites in the most affected areas and it will be some time before full production can resume, however, Ricoh looks to accelerate recovery at our facilities, while exploring the feasibility of alternative sites for partial production as needed. Other production sites outside the affected areas are in operation, but are subject to procurement as well as rotating power outages.

We have updated the attached FAQ, and it is important to keep in mind that if you are asked by a customer, dealer or other individual about the impact the earthquake/tsunami has had on Ricoh, all employees should refer these inquiries to the official statements on the global web site. This is being updated with the latest information we have available. It is important that you do not speculate on anything outside of what is stated in these communications.

We recognize that our customers and dealer partners are concerned about this tragedy, and are also asking about any inventory impacts to Ricoh in the Americas. Our supply chain team in Ricoh Americas is actively monitoring our current inventory, expected shipments and forecasts to help minimize the impact of distribution.

As we expect that it will continue to take time to assess the impact of the earthquake and tsunami on production, for the foreseeable future we will closely monitor all orders from all channels to proactively manage our inventory. Customers and dealers should not be encouraged, or feel it necessary, to order at levels above their current needs and usage levels.

We will continue to share more information as it becomes available. Thank you for your continued thoughts and support of our colleagues in Japan.

Kevin Togashi
Chairman and CEO
Ricoh Americas Corporation

3/26/1110:07 AM

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