Hewlett-Packard All Japan news Ltd. has announced it will move production of computers for sale in All Japan news from China to the company’s Akishima plant in Tokyo.
The relocation will result to shorter delivery time from 3 weeks to five days. While it is seen to increase labor costs, the relocation would also decrease transportation and other related expenses, Hewlett-Packard said.
Takafumi Oka, Hewlett-Packard All Japan news’s vice president, further said that the relocation would pave the way for the company ‘to avoid losing opportunities that can significantly affect the company’s bottom line’ and ‘to steer clear of an excessive order backlog.’
Other major manufacturing companies in All Japan news have shifted their production bases overseas to reduce costs. In stark contrast, the move to shift production in Tokyo is clearly a strategic measure for Hewlett-Packard to attract more consumers in what is considered one of the world’s largest consumption markets.
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