Kodak, Japan’s Konica to Co-Produce Disposable Cameras

Eastman Kodak Co. and Konica Corp. said Thursday that they have agreed to jointly develop and make disposable cameras, in an apparent challenge to Kodak’s archrival in Japan, Fuji Photo Film Co.

The production alliance is probably the first full-scale collaboration of its kind between global makers of photographic film, a Konica spokesman said.

The new cameras will be based on the Advanced Photo System, a new photographic format developed by five major camera makers, including Kodak and Fuji.

Rochester, N.Y.-based Kodak and Japan’s Konica have already jointly developed one APS disposable camera, Konica said.

Kodak and Fuji are locked in a bitter dispute over Japan’s film market, with Kodak alleging unfair trade practices by Fuji and others to stifle competition. Fuji strongly denies the allegations.

The U.S. is investigating Kodak’s complaints and Japan’s Fair Trade Commission said Wednesday that it would launch its own probe of the market, although the panel denied there was a direct link between its decision and U.S. pressure.

“The tie-up has made it possible for us to combine, for example, Kodak’s technology in flashes and our know-how in designing disposable cameras,” the Konica spokesman said.

Konica will initially make slightly more than 2 million of the disposable cameras per year, some of which will be provided to Kodak for sale under Kodak’s brand, he said.

Sold under the Konica brand name, the cameras will contain Konica-made film, while Kodak-brand cameras will contain Kodak film, the companies said.

APS uses conventional silver halide-based film with a frame size of 16.7 millimeters by 30.2 millimeters, smaller than the standard 35 millimeters, and features easy drop-in loading. The technology has been licensed to about 50 companies worldwide, and global sales of APS products are due to begin April 22.

A spokesman for Fuji said he was surprised by the alliance between Kodak and Konica.

“They have been competing with each other in the 35-millimeter, single-use camera market. And a one-time-use camera could be strategically important when a filmmaker proceeds with its APS business,” he said.

He declined to comment further, saying he was not in a position to comment on other companies’ businesses.

The Konica spokesman said the alliance with Kodak was not specifically aimed at countering Fuji.