Kodak Announces Plans for First Plant in Japan

Eastman Kodak Co. announced plans Monday to open its first manufacturing plant in Japan, a move that could be viewed as a tit for tat with rival Fuji Photo Film Co. Ltd.

Kodak expects to open its finishing and packaging facility for certain graphic arts films by the end of the year, company spokesman Ron Roberts said. It is in Yokohama and will initially employ 10 workers.

“There may be some thought that this will send a message to Fuji that if they do more in the U.S., Kodak will do more in Japan,” said Peter Enderlin, a stock analyst with Smith Barney, Harris Upham & Co. in New York.

Kodak’s announcement comes 10 days after Fuji held ground-breaking ceremonies for its first manufacturing plant in the United States, Fuji spokeswoman Carol O’Laughlin said.

That plant, in Greenwood, S.C., will also make products for the graphic arts industry. It will employ about 150 people and be about seven times larger than Kodak’s facility.

Roberts said Kodak’s decision to open a plant in Japan had nothing to do with Fuji or any other competitor.

“This is not a reaction to that. The two are not related,” Roberts said. “Our decision is a business decision, a response to what we see in the market.”

Roberts said Kodak is opening the plant to become more efficient in making several graphic arts products that come in sizes unique to the Japanese market. The plant will cut and package huge rolls of the company’s film shipped in from Rochester.

Enderlin, the stock analyst, said Kodak’s main reason is probably to take advantage of currency fluctuations between the dollar and the yen.

Analysts also said that the new plant will continue Kodak’s increased emphasis in Japan, where the company recently opened a large research and development facility.