The joint venture between Konica Minolta and Fujifilm is another example of reorganization in the business technology industry.
Above: Konica Minolta President and CEO Toshimitsu Taiko and Fujifilm BI President and CEO Naoki Hama
Konica Minolta and Fujifilm Business Innovation (Fujifilm BI) announced on April 15 that they have signed a basic agreement to begin discussing a business partnership for MFPs, office printers, and production printers.
Establishing a joint venture is targeted for July to September this year, with Fujifilm BI holding a majority stake. Ricoh and Toshiba Tec announced a similar partnership in May 2023 for joint development and production of MFPs. Konica Minolta and Fujifilm BI aim to achieve early effects from this partnership through collaborative procurement and a production partnership for consumables. Both companies will handle product production and sales. While the market is expected to shrink, the direction of industry reorganization remains uncertain, and the future moves of remaining players like Canon, Kyocera Document Solutions, and Sharp are also drawing attention.
Konica Minolta and Fujifilm BI remain in discussions to further strengthen their business foundation, including building a robust supply structure. The main three points of discussion include:
- Collaboration in the procurement of raw materials and components.
- A business partnership for toner development and production.
- Additional business partnerships for MFPs, office printers, and production printers, which will be agreed upon separately.
In the future, based on mutual agreement, the two companies plan to expand the scope of the target business and advance discussions. The business partnership, a mutually beneficial endeavor, will initially focus on cost reduction through joint procurement and prioritizing the development and production partnership for consumables, with plans to gradually expand the areas of partnership based on collaborative achievements. The decision to enter into this business partnership was made because the top executives of both companies shared a common understanding of the issues and believed that collaborating would yield results. The joint venture, which does not include integrating MFP production divisions (factories), will have approximately 100 to 200 employees.
A Tale of Two Companies
Konica Minolta announced on April 4, 2024, that it would accelerate the selection and concentration of its businesses and implement a global structural reform to improve productivity across the group as part of its mid-term management plan (2023–2025) for sustainable growth thereafter.
Additionally, Fujifilm BI has been supplying products to Xerox in the U.S. and is approaching the renewal period of a five-year contract around November this year. There are no signs that Xerox will switch to products from other companies, and it is expected that the contract with Fujifilm BI will be renewed. However, the company recently underwent an organizational restructuring that reduced about 3,100 staff members, indicating an undeniable reduction in size.
Leadership Comments about the Joint Venture
Konica Minolta President and CEO Toshimitsu Taiko and Fujifilm BI President and CEO Naoki Hama.
“Under a shared recognition of common issues, this business partnership will maximize each other’s strengths, aiming to improve investment efficiency, cost competitiveness, supply stability, environmental response, and business continuity planning capabilities, thereby enhancing business resilience as global manufacturers.” — Toshimitsu Taiko, president and CEO of Konica Minolta
“The discussions for this business partnership are crucial for enhancing our competitiveness and presence in the global market and making a new leap forward. I am confident that under our partnership, constructing a new framework and strengthening our supply chain will establish a more robust business foundation.” — Naoki Hama, president and CEO of Fujifilm BI
