By Petr Kramerius, Regional Manager at Infosource
Fujifilm Business Innovation and Konica Minolta have signed an agreement to establish a joint venture that will coordinate the procurement of raw materials and parts. This agreement follows a feasibility study for an alliance in the multifunction printer (MFP), office printer, and production printer segments that started in April.
Fujifilm Business Innovation and Konica Minolta expect the yet-to-be-named joint venture company to be formally established by the end of September.
The joint venture will initially focus on three areas: the procurement of raw materials and parts, an alliance covering toner development and production, and “other business alliances,” which will encompass strategic collaborations that will be addressed separately.
Through the joint venture, Fujifilm Business Innovation and Konica Minolta aim to leverage their extensive supplier networks to strengthen their business foundations by establishing a robust supply system for their products and streamlining their business processes in the printer market.
In April, Fujifilm Business Innovation CEO Naoki Hama said: “The business alliance discussions were based on the idea that in addition to what we could do on our own, we wanted to do something that would further strengthen our business foundation through a new business alliance.
“We want to do things that will benefit both parties if we partner with them and that will produce results as soon as possible. With that in mind, I thought that a partnership in procurement and toner production would probably be the most effective way to start.”
He said that Fujifilm had been thinking about how to increase capacity at its two toner manufacturing locations in Japan. “Konica Minolta has production facilities in Kofu and Tatsuno and excess capacity. From a capital investment standpoint, the most benefit is when both parties can manufacture products at both sites,” he added.
Hama also noted the JV plans had no impact on Fujifilm’s relationship with Xerox: “We intend to build a good relationship with Xerox and continue our business based on a solid partnership.”
This move from Fujifilm Business Innovation and Konica Minolta echoes recent developments at Ricoh and Toshiba, Thise two companies have established a joint venture to be known as ETRIA and headquartered in Yokohama, Japan. The name ETRIA stands for “Eternal, Try, Innovation, Alliance.”
ETRIA will supply and manufacture devices for Ricoh and Toshiba and seek to meet the emerging demands for MFPs, which include security, energy efficiency, and the circular economy. By coordinating core product parts, purchasing channels and production sites of Ricoh and Toshiba, ETRIA will create a stable supply chain to deliver high-value devices.