Canon plans to spend 1.3 billion on extra capacity to make toner cartridges

Canon Inc., Tokyo, Japan, will spend ¥140 billion (US$1.3 billion) to boost its capacity to make toner cartridges for popular laser printers, reports Reuters. Toner is a source of profit for the company, typically generating consistent revenue. The company's laser printer-related revenues, which include toner cartridge sales, totalled ¥1 trillion (US$9.1 billion) in 2006, accounting for about one quarter of its total sales, says Reuters.

Reuters also reports that Canon will invest ¥80 billion (US$728 million) to build a new plant in Hita in Oita prefecture on the southern island of Kyushu by September 2009. The company will spend another ¥60 billion (US$546 million) to increase output capacity at an existing factory in Oita city.