Epson Completes Factory in the Philippines
LIPA, Philippines – Epson Precision (Philippines) Inc., a manufacturing subsidiary of Seiko Epson Corporation (Epson), held a ceremony on December 8 to celebrate the opening of a new factory (Factory 2) in the city of Lipa, in Batangas province. The new factory will significantly increase Epson's 3LCD projector and inkjet printer manufacturing capacity.
Factory 2 construction, which began in October 2010, was completed this September, on schedule. The plant is already in operation.
Epson decided to augment its 3LCD projector and inkjet printer manufacturing capacity by adding a second plant to the existing facilities and infrastructure at Epson Precision (Philippines), where the company already has an entrenched workforce with outstanding technical expertise. This move was made in response to the outlook for projector and printer demand.
The projector market is expected to grow significantly, with growth fueled primarily by expanding applications in business and education and swelling demand in emerging markets. Epson is keen to capture this demand and boost projector sales by taking advantage of the strengths of the high-temperature polysilicon TFT panels that it manufactures in-house, by strengthening its lineup of models for use in education and offices, and by stepping up its efforts to expand in the ultra-big-screen market.
Epson also anticipates growth in inkjet printer for enterprise and in emerging markets. The company is looking to increase its inkjet sales by bolstering its lineup of printers with models that offer convenience that exceeds the vision of its customers.
Factory 2, built on land adjacent to the existing plant (Factory 1), will increase the projector production capacity of Epson Precision (Philippines) to about one-million units per year by the end of FY2012. Moreover, the plant is expected to have increased its annual inkjet printer production capacity to about six million units, or double its current capacity, by the end of FY2012. Total investment in this project by that time will amount to approximately US$110 million, while the workforce will grow from the current headcount of about 6,000 to approximately 8,000.
Commenting on the new factory, Minoru Usui, president of Epson, said, "Epson Precision (Philippines) is the Epson Group's first projector manufacturing facility outside of China. Given the expectations for projector business growth, we see the Lipa Factory as a lynchpin in Epson's future growth plans. Epson is committed to shipping customer-satisfying products from our factories here in the Philippines to our customers throughout the world. At the same time, we are equally committed to contributing to the economic prosperity and people of the Philippines."
In his address, Tadaaki Hagata, chief operating officer of Epson's Imaging Products Operations Segment, said, "As a key site for manufacturing Epson's bread-and-butter inkjet and projector products, Epson Precision (Philippines) will play a vital role in the growth of our company. Together with the excellent employees of the Epson Precision (Philippines) Inc., I will do everything in my power to further develop and make this factory the No. 1 factory in the world. Epson will also strive to contribute more to the friendship between the Philippines and Japan, and to the economic development of our nations.
Epson has positioned printers and projectors as core growth businesses in its SE15 Long-Range Corporate Vision. The new plant in the Philippines will play an important role in achieving this vision by providing the manufacturing capacity that will allow Epson to return to a growth path by helping the company to supply high-quality products to its customers.