It costs billions of yen, but Kyocera still moves production from China to Vietnam to avoid US tariffs

According to Kyocera’s announcement last Friday, the manufacturer will move the production of multifunction printers and photocopiers to the US market from China to Vietnam – a move that is seen as dodging. avoid US tariffs.

Kyocera chairman, Hideo Tanimoto, told reporters: ” We will transform production between Chinese factories and Vietnamese factories .” The multifunction printers manufactured in China are mainly shipped to the United States, while the printers produced in Vietnam are mainly directed to the European market.

This decision was made after months of deliberation and publication after the US president Donald Trump posted a tweet about the intention to impose new tariffs on Chinese goods. Multi-function printers that are also on the $ 300 billion list of goods will receive a 10% tax increase on September 1 here.

The relocation of production will be carried out in the current fiscal year to March 2020, but they will take time to adjust the procurement of materials and other processes. The cost of this activity can be up to billions of Yen (One billion yen equals about 9.2 million USD).

Kyocera’s document solutions business brought about 375 billion yen in revenue in the previous fiscal year, with about 20% of which came from the US market. When asked about the impact of trade war on business, Mr. Tanimoto expressed deep concern about the Chinese economy.

” The impact from China’s economic recession will be even greater than the additional tariffs .” He said. ” If the fourth tariff on Chinese goods is applied, the Chinese economy will be affected .”

Refer to Nikkei Asian Review