INVEST VEDP Quarterly

Issue Two
March 2010

CANON VIRGINIA FOCUSES
ON INNOVATION AND PROGRESS
A Q&A with Mr. Hanagata

You started working for Canon in 1968, helping to introduce the world’s first portable calculator and have held many roles since then, including President and CEO of Canon Virginia Inc. for seven years. What is your role now?

I am Chairman of Canon Virginia Inc. Part of my job is to build a relationship within this community and also a relationship with the other Canon group companies, including Canon USA, our parent company, which is located in
Lake Success, N.Y.

I have another title: I am Chairman of Canon U.S. Life Sciences, located in Baltimore, a company in the medical field. For almost five years, we have been working to develop new technology for the medical industry.

What are your current priorities?

Research and development is a high priority. I was asked by our headquarters in Japan to start R&D for automation, because we are investing in automation machines here in Virginia.

Why the focus on automation?

Around the year 2000, many manufacturing jobs in the U.S. shifted to Southeast Asia. Canon was no exception, so we decided to change our style of production here in Virginia. The Asian manufacturing style is about many people assembling things. Sometimes a factory can have 5,000 people, which is OK because labor is cheap.

But, of course, the labor cost in the USA is higher, so we must focus on more efficient operations. That’s why we are studying automation. If we are successful in developing automated lines, we will be able to move production to Virginia that might otherwise go to another country. This type of manufacturing also requires a highly skilled technician.

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