FUJIFILM KONICA MINOLTA JV ESTABLISHED

Fujifilm and Konica Minolta have established their new joint venture operation, created to gain procurement efficiencies for the imaging giants. The JV will operate independently of the two businesses.

The JV, named Global Procurement Partners, is 75 per cent owned by Fujifilm Business Innovation and 25 per cent by Konica Minolta. It will operate out of Yokohama City, with 192 staff; 137 seconded from Fujifilm Business Innovation and 55 from Konica Minolta.

The companies said the JV has been established because the market landscape “requires proactive measures”.

It will focus on three areas; the procurement of raw materials and parts, an alliance for toner development and production, and “other alliances”.

Industry insiders believe that the Master Trust Bank of Japan, a major shareholder in both Fujifilm and Konica Minolta, was a driving force behind the deal, with the markets for the two businesses becoming increasingly competitive.

The bigger of the two companies, Fujifilm, with sales of $30bn, is profitable, its operating profit last year was up by 19 per cent to $3bn, and while Konica Minolta posted sales up by a quarter to $11.8bn, its operating figures have been in the red for several years.