News Release

Indonesia Epson Opens New Inkjet Printer Factory

- Opening ceremony held on April 22 -

View of the new factory and opening ceremony

- TOKYO, Japan, April 22, 2016 -

Seiko Epson Corporation (TSE: 6724, "Epson") today announced that its Indonesian manufacturing subsidiary P.T. Indonesia Epson Industry has begun production at a new inkjet printer assembly factory as part of the company's strategic plans for its inkjet printer (printing solutions) business. Indonesia Epson held an opening ceremony for guests including representatives of the Indonesian government earlier today.

The factory, which was acquired from another company in July 2013, lies adjacent to the current lot and was refurbished at a cost of about 3 billion yen in FY2015 (ended March 2016). Indonesia Epson is a key production site in Epson's printing solutions business. It primarily manufactures strategic products, such as high-capacity ink tank printers and office inkjet printers. The company will expand its production capacity in the future as warranted by demand and plans to increase its workforce to 12,000 from the current level of about 10,000.*

In addition to production and logistics functions, Indonesia Epson has a printer design function. The company's design capabilities will be strengthened in the future to tailor products to the needs of emerging markets, design products for easier manufacturability, and accelerate product development cycle times.

Under its Epson 25 Mid-Range Business Plan (FY2016-2018), Epson plans to aggressively invest in PrecisionCore inkjet printhead technology, the core technology of the printing solutions business. Epson is positioning itself to meet expanded demand over the long term by adding new production capacity to augment its existing operations at the Suwa Minami Plant and at Tohoku Epson in Japan, which have production lines. Also in Japan, Epson is installing a new front-end line at the Hirooka Office and a new back-end line (head assembly) at Akita Epson. The company is also augmenting product assembly lines in Indonesia and the Philippines.

Epson has integrated the production, distribution, sales, service and support of finished products created using original inkjet technology and core devices. Going forward, Epson will leverage this vertically integrated model to provide products and services that surprise and delight customers around the world.

Profile of new factory

FY2015 investment

Approx. 3 billion yen to refurbish an existing factory on an adjacent lot that was acquired in July 2013

Primary operations

Production of inkjet printers and serial impact dot matrix (SIDM) printers

Line startup

November 2015

Floor space

Approx. 47,400 m²

Lot size

Approx. 53,000 m²

Employees

Increase from the current 10,000 to 12,000 by 2020*

Indonesia Epson company profile

Name P.T. Indonesia Epson Industry
Address EJIP Industrial Park Plot 4E
Cikarang Selatan, Bekasi 17550 Indonesia
President Eiichi Abe
Founded July 27, 1994
Employees Approx. 10,000
Area Lot: 260,200 m² Buildings: 151,100 m² (include new factory)
Operations Production of inkjet printers and serial impact dot matrix (SIDM) printers, scanners, point of sales (POS) printers
Ownership Indonesia Epson is a wholly owned subsidiary of Seiko Epson Corporation

* This figure is based on the current outlook and is subject to change.

About Epson
Epson is a global technology leader dedicated to connecting people, things and information with its original efficient, compact and precision technologies. With a lineup that ranges from inkjet printers and digital printing systems to 3LCD projectors, smart glasses, sensing systems and industrial robots, the company is focused on driving innovations and exceeding customer expectations in inkjet, visual communications, wearables and robotics.
Led by the Japan-based Seiko Epson Corporation, the Epson Group comprises nearly 72,000 employees in 93 companies around the world, and is proud of its contributions to the communities in which it operates and its ongoing efforts to reduce environmental impacts.
http://global.epson.com/


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