Mitsubishi Kagaku Imaging Corporation (“MKIC”), also doing business as Future Graphics, will be closing its Chesapeake, Virginia monochrome toner plant in March 2016.
The closure is the final step in a multi-year reorganisation that has included consolidating MKIC’s Research and Development activities, expanding global distribution, and increasing manufacturing capacity at MKIC’s Naoestu, Japan production toner plant. MKIC will continue to develop next generation monochrome toners, colour toners and OPC technologies to maintain its position as the global leader in the imaging aftermarket.
In addition to increasing its production capacity in Naoestu, Japan, MKIC has entered into strategic global supply agreements for toll manufacturing with key industry partners who will continue to implement MKIC’s proprietary formulas and materials. MKIC has already begun to transition the complete product line made in the Virginia toner plant so that there will not be any interruption to MKIC’s renowned service and quality. MKIC’s products will continue to be available through Future Graphics and its worldwide distribution partners.
“The decision to close the Virginia toner plant was an extremely difficult one,” said Hiromitsu Takayama, President and CEO of MKIC, “But it is a necessary step for the long-term vision of our company and our desire to be the market technology leader.”
MKIC combines market knowledge and technical expertise to bring its customers the best value toner and OPCs in the imaging aftermarket. We have unmatched resources capable of delivering first-to-market matched systems to remanufacturers around the globe. MKIC is also the source of superior MK Imaging brand OPCs and toner, Kaleido Chrome brand colour toner and OPCs, and TRUE HEX and TRUE CONEX gears for OPCs.
David Connett, Editor and Publisher of The Recycler, commented: “MKIC have been in talks for some time about the future of this plant and the closure is not unexpected as MKIC and the industry adjusts to meet the market demand for both colour and monochrome toners. There is growth in the colour toner sector, but and over capacity in the monochrome sector where a combination of investment in the latest technology, a low cost base and being close to the Asian market are critical factors. Demand for monochrome toner is stable in north America and Europe and growing in the Asia region. What is very good news is that MKIC products will continue to be available through Future Graphics and their worldwide distribution partners.”
Note: According to Black’s Law Dictionary, toll manufacturing is an arrangement where a company will process raw materials or partly completed goods for another company. Also known as toll processing.