Fujifilm is planning a shake up of how the graphic systems business works with Fuji Xerox in Asia, as part of a new three-year medium term plan intended to reduce dependency on the traditional film business and increase profitability.
The company has up to $4.5 billion to spend on acquisitions, but this is unlikely to be in its document solutions division which operates Fuji Xerox as the distribution channel for the Asian market and as a technology provider to Xerox. “Market conditions are expected to continue to be harsh,” the company says. The focus will be on improving profitability rather than on gaining revenue.
This will come through a closer collaboration between the commercial print focus of the graphic arts business and Fuji Xerox and will include development and marketing of inkjet products.
Development of Fuji’s inkjet heads for 3D and other industrial print applications is on the cards as a way of expanding that division, part of the information systems business. This also holds the graphic systems business which is targeted for growth and improvements in profitability.
There will be an emphasis on higher value products, including process free CTP plates. In this area the Superia ZD long run process free plate is now being commercialised.
The big thrust however is in medical and healthcare where Fuji aims to expand its pharmaceutical products, particularly in cancer and Alzheimer’s treatments and in regenerative medicines. It is still in the growth phase, but will become one of Fuji’s core business pillars of the future.
This is where much of the investment is expected to be focused. The overall goal of the Vision 2019 plan is to boost sales from ¥2,322 billion in this financial year to ¥2,600 billion in three years.
President and COO Kenji Sukeno says: “Each of the businesses must improve their profitability to generate stable cashflow and we accelerate growth in main business areas to expand sales and income. We will invest provided cash in fields that will form our future business pillars.”
Fujifilm will be focusing on higher value products including processes plates under the new three year plan, where healthcare will receive the lion's share of new investment.