Rivals to Become Partners
Ricoh and Toshiba will combine the production of printers, copiers, and other office machines, marking the first deal between rival office equipment manufacturers to integrate production.
According to Nikkei, the deal will merge Ricoh’s manufacturing and Toshiba Tec into a single company in 2024, in which Ricoh will take a majority stake.
Bringing together technology to enhance competitiveness, the acquisition is believed to create the world’s largest player amid declining demand due to the rise of remote work and paperless offices.
It is said that the move will result in cost-savings by streamlining operations from designing and development to production. In the medium to long term, the companies will also consider restructuring factories. Sales and marketing will be handled separately.
Ricoh’s share of the global market for A3 laser multifunction printers was 15.2%, or approximately 510,000 units, in 2022, second behind Canon, according to U.S. researcher IDC. Toshiba Tec ranked seventh with a 7.2% share.
Total shipments for the two companies came to about 750,000 units, which would make the integrated company the world’s largest on a shipment basis.
Office machine manufacturers are currently stuck with excess capacity as demand for office printing has steadily declined. Ricoh and Toshiba plan to encourage others to join the new company, with the new company possibly becoming a home to spun-off office machine production operations as Japanese manufacturers restructure.
- Ricoh Top Management Change
- Ricoh Graphic Communications Welcomes New President
- Ricoh Tells Customers to Print Less and Print is Dead
- Toshiba Tec Reports Sales and Profit Growth in FY 2022
- Toshiba Tec Reports Improvements in Q3
Please leave your comments below for the story “Rivals to Become Partners.”