Japanese imaging technology giant Canon has shut down one of its major printer production facilities in mainland China, underscoring the growing clout of domestic brands in the country’s printing market.
A visit on Thursday by the Post to Canon Zhongshan Business Machines, in Zhongshan city in the southern Guangdong province, revealed little activity. The car park was nearly empty, while a dozen employees strolled outside the office building.
A worker said production had halted late last month, with remaining staff tasked with “handling the aftermath”, including severance payments and supplier settlements.
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The company, which specialises in laser printers, told employees the shutdown was attributed to a shrinking market and intensifying competition from rising local brands, according to local media reports. A public relations manager from Canon China said the plant “ceased its production and business operations on November 21” primarily due to a “shrinking” laser printer market.
Closed restaurants and a convenience store outside Canon’s dormitories. Photo: Coco Feng alt=Closed restaurants and a convenience store outside Canon’s dormitories. Photo: Coco Feng>
The compensation was generous, workers said. For example, one employee, who worked at the plant for 10 years, expected to receive about 200,000 yuan (US$28,290) in severance. Based on the company’s disclosed average monthly pay of 4,800 yuan in the first half of 2024, the payout equated to nearly 43 months’ salary.
Canon’s skilled workforce has already attracted attention from recruiters. Fliers were distributed outside the factory gates by local electronics manufacturers seeking to hire experienced staff suddenly available on the market.
Two workers said they were not surprised by the closure, noting that the company had been downsizing for years. The Zhongshan plant had more than 1,000 employees when it closed, down from around 10,000 during its peak.
Established in 2001, the Zhongshan facility expanded so rapidly that it relocated to the current site in 2012, absorbing production capacity from neighbouring Zhuhai city. The factory was notable not only for its production lines but also for amenities that included sports facilities, a cinema, a reading room, and dormitories equipped with air conditioning, washing machines and televisions. Workers said they were allowed to continue living there free of charge until December 21.
