Canon Taiwan to boost lens production capability

TOKYO, September 5, 2008—Canon Inc. announced today plans to construct new production facilities on the premises of Canon Inc., Taiwan with the aim of expanding production of interchangeable EF lenses for single-lens reflex cameras.

Canon currently manufactures EF lenses at: the Canon Inc. Utsunomiya Plant; Oita Canon Inc.; Canon Inc., Taiwan; and Canon Opto (Malaysia) Sdn. Bhd.

The continued growth of the global digital SLR camera market has led to a rapidly increasing demand for interchangeable lenses, which has created a pressing need for Canon to expand production capacity for its EF lenses. In response to these market conditions, Canon has been actively working toward the selection of a site for the establishment of new production facilities. As a result, upon taking into consideration such factors as the advanced levels of technology required for lens production based on many years of experience and securing a stable workforce, the company decided on Canon Inc., Taiwan.

Construction of the new facilities is scheduled to begin in September 2008 with the expanded production operations expected to commence in July 2009.

Overview of Expansion Plans

1. Name: Canon Inc., Taiwan
2. Location: Taichung Hsien, Taichung Export Processing Zone, Taiwan
3. Representative: Kenji Yoshida, President
4. Business activities: Production of EF lenses for SLR cameras
5. Employees: approx. 2,400 (as of August 2008)
6. Capital: NT$800 million
7. Establishment: June 1970
8. Land area: approx. 20,365 sq. meters
9. Total floor area: Expansion area: 13,744 sq. meters (Total: 59,276 sq. meters)
10. Planned staff increase: approx. 600 (by 2009)
11. Investment: approx. ¥2 billion
12. Start of construction: September 2008
12. Start of production: July 2009 (tentative)