Konica Minolta and FujiFilm exploring a "strategic alliance"

[jwheeler]

Very interesting news posted by Konica Minolta about a potential strategic alliance with FujiFilm:

Konica Minolta, Inc. and FUJIFILM Business Innovation Corp. today announced they have signed a memorandum of understanding to begin a feasibility study for a strategic alliance in the multifunction printer (MFP), office printer and production printer segments.

The rapidly evolving market landscape for MFPs and printers requires proactive measures. Konica Minolta and FUJIFILM Business Innovation are actively considering a business alliance to strengthen their business foundation including the development of a robust supply system for their products. The companies are also seeking to expand other business alliances and continue discussions. The main details of these promising discussions are as follows:

(1)Procurement business alliance

-Exploring the establishment of a joint venture to coordinate the procurement of raw materials and parts.
・Tentative timetable for establishment of a joint venture：Second quarter of FY2024
・Shareholding Ratio：Majority ownership by FUJIFILM Business Innovation Corp.

(2)Toner development and production business alliance

(3)Other business alliances:

-Discussion and agreement on other strategic collaborations related to the subject business will be addressed separately.

Toshimitsu Taiko, President and CEO, KONICA MINOLTA, INC. said: Sharing a common understating of the challenges facing the business, the two leading companies will be able to mutually maximize strengths through this alliance. I am looking forward to working together to improve investment efficiency and cost-competitiveness, strengthen capabilities for stable supply, environmental initiatives, and business continuity plans (BCP), and pursue the potential for enhancing business resilience as global manufacturers.

Naoki Hama, President and CEO, FUJIFILM Business Innovation Corp. said: The ongoing discussions for this business alliance are of immense importance as we strive to strengthen our competitiveness and expand our global presence to make a significant leap forward. We are confident that this partnership will create a new framework to enhance our supply chain and build a robust business foundation.

 

[jwheeler]

Fujifilm has been making a lot of big moves lately. Most know that they were the actual manufacturer of the Xerox line of production printers. This year, Sharp started selling a re-labeled version of the Irridesse. Fujifilm is also now selling their equipment directly in the USA under the Revoria label/series. I have seen several job postings for Fujifilm hiring production sales reps and service techs. This potential partnership with KM might be a way of expediting the expansion into the USA.

 

[pippip]

That seems very weird. So are Fuji just giving up on their own tech at a time when they're trying to go on their own without Xerox? Doesn't exactly show a confident future when trying to convince Xerox clients to buy Fuji or Sharp in new markets. I wonder is it the beginnings of some sort of buyout? Whatever it is it sounds like it's a long long way in the future before it results in anything tangent.

 

[TJPrinter]

This is interesting news. I thought it was odd that Eastern Managed Print Network (owned by Xerox) once sold and serviced KM machines alongside Xerox machines.

Sure looks like Fuji has every intention of taking over what Xerox once was very profitable at. Once Fuji figures out the service end and actually has service personnel in the field, I don’t see Xerox being able to figure out or even desire to find reliable manufacturing partners. Xerox has some significant toner production in the USA and Canada but who’s going to do the rest of their required manufacturing if it’s not going to be Fuji.

I would guess that the hill is much steeper for Xerox than it is for Fuji and don't think it's going to take years for Xerox to fall out of the production market.

 

[kslight]

If I had to guess, this seems like Fuji being (understandably) reluctant to invest heavily in their own team of techs and support network, and probably plan to let KM shoulder that work. Yes I have seen job postings for Fuji techs and such but have to assume unless there are a lot of these Fuji machines in the US then that is a recipe for a future layoff and have to assume that in most markets they’ll have a hard time securing good talent.

 

[pippip]

If I had to guess, this seems like Fuji being (understandably) reluctant to invest heavily in their own team of techs and support network, and probably plan to let KM shoulder that work. Yes I have seen job postings for Fuji techs and such but have to assume unless there are a lot of these Fuji machines in the US then that is a recipe for a future layoff and have to assume that in most markets they’ll have a hard time securing good talent.

Which would be interesting considering km announced offloading 2.5k jobs last week with probably more to come.

 

[jwheeler]

Printweek just posted an article with an update on this topic: Fujifilm and Konica Minolta make progress with joint venture plans

Key notes from article:

• The initial focus will be on three areas: the procurement of raw materials and parts; an alliance covering toner development and production; and “other business alliances” covering strategic collaborations that will be addressed separately.
• The expected date of establishment is 30 September.
• Hama also noted the joint venture plans had no impact on Fujifilm’s relationship with Xerox.

 

[TJPrinter]

This is all very interesting. There's Fujifilm and Xerox, Fujifilm and Sharp and now Fujifilm and Konica. Next?