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Expands Manufacturing in Shanghai
to Provide the Global Market
with Digital Copy and Multifunction Machines

- Three-fold increase of annual manufacturing capacity in FY2005
November 1, 2004

Fuji Xerox of Shanghai Limited, one of Fuji Xerox's manufacturing bases, has expanded its production line for digital copy and multifunction machines, with full-fledged operations beginning on November 1. The move comes as Fuji Xerox steps up plans to shift 90 percent of its manufacturing to China by FY2005. Expanding the scale of manufacturing at the key Shanghai site will enable the Company to provide digital copy and multifunction machines to the global market as well as the local Chinese market.

The cost of the new factory wing and the expansion of the manufacturing line totaled approximately 1.0 billion yen. The floor area has been increased by 8,000m2 for a total of nearly 36,000m2, while the annual manufacturing capacity will be ramped up from the current 90,000 to roughly 300,000 units in FY2005. The number of personnel employed at the site will double from approximately 700 (as of December 2003) to 1,400.

The main products manufactured at the expanded factory include low- to mid-range digital copy machines and multifunction machines, which will be exported to markets across the globe. Besides catering to its core territory in the Asia-Pacific region, including Japan, leveraged ties with Xerox Corporation will help drive sales in other areas around the world.

The scale of the copy machine market for Fuji Xerox in China is expected to increase approximately 1.7-fold Note by 2008 in comparison with FY2003 levels. Next to Japan, China will then become the second largest market for Fuji Xerox in the Asia-Pacific region. In order to expand and strengthen activities in this attractive market, Fuji Xerox plans to transfer 90 percent of its manufacturing operations to China (Fuji Xerox of Shanghai and Fuji Xerox of Shenzhen) by FY2005. The headquarters functions of the overseas marketing were shifted from Singapore to Shanghai in April 2003. Fuji Xerox also intends to strengthen its sales channel, establish a direct sales system and develop sales promotion efforts, including advertising campaigns, in China.
Note: Fuji Xerox research: total unit sales of copy machines and multifunction machines over 11 ppm

 
Fuji Xerox views China as a key strategic market, with the latest endeavor aiming to strengthen the link with Japan on both a manufacturing and marketing front.
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Fuji Xerox of Shanghai Limited Overview
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Established as a development and manufacturing base for copy machines, multifunction machines and toners, Fuji Xerox of Shanghai supports Fuji Xerox's copy machines business by supplying high-quality, low-cost products to the Chinese market as well as globally. The company acquired ISO14001 certification in June 1998.
Location: 46 Nan Gu Road Minghang 200245, Shanghai, China
Date of establishment: November 4, 1987
Floor area: 36,000m2
Capital: US$38 million (Fuji Xerox Co., Ltd. 70%, Fuji Photo Film Co., Ltd. 10%, local partners 20%)
Products: Copy machines, digital multifunction machines and related components
Employees: Approx. 1,400 (as of October 2004)
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Fuji Xerox of Shenzhen Ltd. Overview
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Fuji Xerox of Shenzhen manufactures laser printers, copy machines and multifunction machines, as well as consumables such as photoreceptors and marking units. It manufactures highly competitive, low-cost products by maximizing the supply infrastructure of southern China and Fuji Xerox's global supply chain. The company acquired ISO14001 certification in November 2000 and OHSAS certification in April 2004.
Location: Guanlan Dahe Village, Changqing Industrial Area, Bao An Shenzhen, China
Date of establishment: June 2, 1995
Floor area: 115,000m2
Capital: US$38 million (Fuji Xerox Co., Ltd. 90%, Fuji Xerox (China) Limited 10%)
Products: Laser printers, copiers, digital multifunction machines and related components
Employees: Approx. 3,000 (as of October 2004)
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Fuji Xerox (China) Limited Overview
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Established in 1995 as Fuji Xerox's marketing and sales base in China, Fuji Xerox (China) Limited has 16 direct sales branches and 26 service centers throughout China, including Beijing, Shanghai, Guangzhou and Tianjin. It boasts approximately 1,000 employees engaged in marketing, maintenance and other services.
Head Office: A10, Full Link Plaza No.18, Chaoyangmenway Ave., Beijing 100020, China
Date of establishment: January 3, 1995
Capital: US$39 million (Fuji Xerox Co., Ltd. 100%)
Employees: Approx. 1,000 (as of October 2004)
 
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