The OEM’s US subsidiary will produce toner cartridges at its Newport News facility.
DailyPress reported that the expansion of the facilities in Newport News will cost $27 million (€206. million), and will “re-establish production of toner cartridges for colour copiers”. The expanded production site will add 12 more jobs that will be filled by reassigned workers from within Canon Virginia, with 30,000 square feet of space to be made available for production.
The $27 million will be split between $17 million (€13 million) on machinery and $10 million (€7.6 million) on the building works, with State Governer Bob McDonnell relating in a press release that the announcement “brings Canon Virginia’s total capital investment to more than $371 million (€284 million) in just the last four years”/ McConnell visited Canon officials in Tokyo on a recent trip, with the OEM confirming building work will begin in August and new equipment will be installed in 1Q2014.
Newport News Economic Development Director Florence Kingston added that there will be a performance-related grant of $3 million (€2.2 million) from the Virginia Investment Partnership, which is due to the expansion of the business within the state of Virginia. Kingston noted in turn that another grant will be available once production is underway, which will be equivalent to the taxes paid to the city.
Kingston continued: “None of this [grant will be paid] in advance. You perform and then you receive them. [The performance-based grant] they will get about three years after they complete the project.” State Secretary of Commerce and Trade Jim Cheng added that “we are thrilled that toner production will now be at the Virginia operation”, and Newport News Mayor McKinley L. Price noted that the “continued growth and success of Newport News businesses remains a priority for our city”.
The OEM’s subsidiary was formed in 1985, with 2,000 employees at its two sites, a recycling facility and an automated toner cartridge manufacturing plant at Newport News. It became the first OEM to earn the R2 recycling certification last year, and previously announced it would be creating 500 jobs over the next five years.