Nikon closes Chinese factory that made compact cameras

Nikon has announced that it is closing a factory with 2,285 employees. It concerns Nikon Imaging China, which has been active since 2002 and where mainly compact cameras were made.

Nikon writes that the factory produced compact cameras and lenses. The rise of the smartphone has reduced the demand for compact cameras, which is why the factory has been producing less and less in recent years. That led to ‘difficult circumstances’, according to Nikon. That is why it has now decided to stop production and close down the factory.

The accompanying figures show that Nikon Imaging China made a loss of approximately four million euros in 2015. In the following two years, there was an operating profit, converted respectively three million and two million euros. Over the past three years, sales have steadily declined. Currently, the company employs 2285 people; Nikon does not say what the plans are for the employees.

Nikon probably won’t completely stop making compact cameras just yet, as it also has a factory in Indonesia for making such devices. The production of new models is on the back burner; Nikon has only introduced one compact camera so far this year: the Coolpix W300, a waterproof model, produced in Indonesia.

One of Nikon’s newest compact cameras, the Coolpix A900 announced in February 2016, also comes from the factory in Indonesia. Two other models, the Coolpix B500 and B700, were made at the Chinese factory. Nikon says it wants to focus more on “high-quality products.” The Japanese company produces its high-end SLR cameras and lenses in Japan, cheaper DSLRs and lenses are often made in Thailand.

China would remain an important market for Nikon, which is why the Nikon Imaging China Sales company will continue to exist. Nikon already implemented a reorganization at the end of last year to remain profitable. At the time, the manufacturer laid off a thousand employees, mainly at the Semiconductor branch.

Nikon Coolpix W300, the only compact camera that Nikon introduced this year.