TOKYO, July 7, 2008--Canon Inc. announced today plans to newly establish Nagasaki Canon Inc., a manufacturing base in Higashi Sonogi-gun, Nagasaki Prefecture, to boost production of digital single-lens reflex (SLR) cameras and compact digital cameras.

The continued growth of the global digital camera market and expected increase in future demand has created a pressing need to expand production capacity for digital SLR and compact digital cameras. In response to these market conditions, Canon has been actively laying the groundwork for the establishment of a new digital camera production base.

As a result, the company has decided on the Hasami industrial complex, based in Higashi Sonogi-gun, Nagasaki Prefecture, as the location for the new plant. Through collaborative operations with Oita Canon Inc., also located in Kyushu, Nagasaki Canon is expected to create synergistic merits, while the location's convenient access will also offer benefits in terms of distribution.

The new plant's workforce will be made up primarily of directly hired employees to ensure the passing on of essential technologies and skills, with plans to actively and continually hire recent graduates and experienced personnel.

Construction of the new plant is scheduled to begin in January 2009 with operations expected to commence in December 2009.