In an exclusive Q&A, Norihiko Ina address Kyocera’s restructuring.
On January 8, 2025, DIGITIMES Asia published an article titled “Kyocera to divest US$1.27 billion in non-core business amid 3-year profit decline.” This headline sparked speculation about the company’s future, with some analysts and competitors misinterpreting the announcement as a sign that Kyocera might exit certain markets, including office equipment and document solutions. However, Kyocera has clarified that while restructuring to improve profitability, its commitment to the copier, MFP, and printer business remains strong.
The A3 MFP market is in decline, with a significant shift toward A4 devices—an area where Kyocera has one of the strongest dealer networks. In our 39th Annual Dealer Survey, 110 dealers reported selling Kyocera A4 products, reinforcing the company’s dominant presence in this segment. Additionally, Kyocera has been strategically expanding into production print, with its TASKalfa Pro 15000c inkjet press demonstrating early success and more developments on the horizon.
Despite financial challenges, Kyocera’s divestiture strategy aims to strengthen its core business, not abandon it. We decided to go straight to the source to address the misconceptions surrounding its restructuring. We submitted our questions directly to Kyocera and received responses from Norihiko Ina, director, managing executive officer, and executive general manager of solutions business, Kyocera Corporation.
FC: Which specific non-core businesses is Kyocera planning to divest resources from?
Ina: Businesses owned and operated by Kyocera Group that are not expected to grow significantly in the future are classified as non-core. The selection will be based on a comprehensive business profitability assessment, including capital efficiency, market growth potential, and affinities between businesses.
FC: Competitors are using the divestiture announcement to claim that Kyocera will reduce its efforts with products sold by dealers. Can you clarify to our readers that spending reductions will not negatively impact the products currently provided to dealers?
Ina: The MFP and printer business is positioned as Kyocera Group’s core business. Therefore, with this move, we will concentrate our management resources more than ever on this business. As a result, we can introduce new products and services to the market more quickly and on a larger scale, enhancing our partners’ benefit.
FC: Why is Kyocera taking this action now?
Ina: The business environment in the components sector, including semiconductors and electronic components, is changing rapidly, and further concentrated investment is essential to maintain and enhance Kyocera Group ‘s competitiveness and profitability. The selection and concentration of our business operations are essential to accelerate this trend. In the Solutions Segment (the Document Business belongs to the Solutions Segment), which accounts for more than half of the entire Kyocera Group’s revenue, we plan to drive business growth by fully leveraging the resources of our document business and integrating it with a variety of technologies Kyocera owns.
FC: What are Kyocera’s current plans for its document solutions business, and how will investments in this segment of the business impact Kyocera’s MFP and printer offerings?
Ina: Our company’s MFP and printer business accounts for over 20% of the group revenue and profit. Again, this is positioned as our core business. In the office document sector, we will continue our investment as before and actively make further new investments. Our focus will be on areas such as environmentally friendly technologies and AI technologies, which we believe are the future of this industry. Additionally, we will increase investment in high-speed commercial inkjet printers and digital textile printers that leverage our inkjet technology.
FC: We recently read that textile print is one of Kyocera’s key areas for the future. Can you give us some idea of when those types of products will be launched?
Ina: Based on the Kyocera Group’s inkjet head technology and ink development capabilities, our digital textile printer is designed to address the apparel industry’s environmental degradation challenges due to the use of copious amounts of water and excessive waste. It is a compact machine that can print textiles close to the point of consumption while using minimal water. We have already introduced it in the Japanese market and plan to launch it in the European and American markets next.
FC: What is your view of the situation of Kyocera Document Solutions in the U.S.?
Ina: The United States is the largest market for Kyocera Document Solutions. Since the end of the pandemic, we have been expanding our market share in the office sector, particularly with A3 color MFPs. By continuing to deliver valuable new products and services to our partners through these investments, we anticipate an even more significant increase in our market share. We also aim to explore new markets by introducing high-speed commercial inkjet printers and digital textile printers. To achieve this, we plan to enhance further the investment (management resources) in our U.S. operations.
