This is the terrible fix Nikon is in.

[Steve Bingham]

3rd Nikon announcement. A small segment:

"We are planning to start production at other Nikon group manufacturing plants and our partner factories in Thailand one after another from December 2011. Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012."

This tells me we might well have to wait until next Summer for that new DX lens and D800. This is certainly a huge financial setback for Nikon. Inexpensive labor is one thing but building your plant in a flood zone is quite another. I suspect there will be some serious changes at Nikon.

Steve Bingham
http://www.dustylens.com
http://www.ghost-town-photography.com

 

[bobn2]

3rd Nikon announcement. A small segment:

"We are planning to start production at other Nikon group manufacturing plants and our partner factories in Thailand one after another from December 2011. Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012."

This tells me we might well have to wait until next Summer for that new DX lens and D800.

The D800 will in any case most probably be built at Sendai. The D400 is the one which will be built in Thailand, along with the lenses. Even then, when you restart a plant, and there's a new model along, it makes sense to restart with that new model, rather than replacing the equipment for the replaced model, so wile there will obviously be a delay, I wouldn't count on the new model delay being anything more than the delay for everything else.

Nikon most probably delayed the launch not because the product development was unfinished but because they needed to devote company efforts to recovery.

This is certainly a huge financial setback for Nikon.

They will be insured. In the end, such problems can be much less damaging than you might think.

Inexpensive labor is one thing but building your plant in a flood zone is quite another. I suspect there will be some serious changes at Nikon.

I think they will diversify their production sites a little more.

--
Bob

 

[JC1306]

3rd Nikon announcement. A small segment:

Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012."

Oh I'm not so sure. They could also mean that production in Thailand will be back to normal in 2012. Besides, it's not like there's no production at all. We don't know how much of Nikons production came from Thailand so there's no telling how well Nikon can compensate for the temporary loss of the factory.

Jarno
--
Photos at http://jarno.smugmug.com

 

[Ilkka Nissilä]

Insurance can only cover the damages (or part of them, unless the insurance company goes bankrupt) whereas the lost income is something Nikon's owners will have to digest. 300million euros is not a small amount of money.

 

[photoforfun]

3rd Nikon announcement. A small segment:

"We are planning to start production at other Nikon group manufacturing plants and our partner factories in Thailand one after another from December 2011. Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012."

This tells me we might well have to wait until next Summer for that new DX lens and D800.

The D800 will in any case most probably be built at Sendai.

No. It was intended to be build in Thailand.

According to my source, I'm quite sure about this. http://www.fotografie.fr/fotoforum/viewtopic.php?f=33&t=1335

--
Bob

--
Kindest regards,
Stany
http://www.fotografie.fr/
http://www.fotografie.fr/fotoforum/index.php

I prefer one really good picture in a day over 10 bad ones in a second...

 

[Steve Bingham]

3rd Nikon announcement. A small segment:

"We are planning to start production at other Nikon group manufacturing plants and our partner factories in Thailand one after another from December 2011. Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012."

This tells me we might well have to wait until next Summer for that new DX lens and D800.

The D800 will in any case most probably be built at Sendai. The D400 is the one which will be built in Thailand, along with the lenses. Even then, when you restart a plant, and there's a new model along, it makes sense to restart with that new model, rather than replacing the equipment for the replaced model, so wile there will obviously be a delay, I wouldn't count on the new model delay being anything more than the delay for everything else.

Nikon most probably delayed the launch not because the product development was unfinished but because they needed to devote company efforts to recovery.

This is certainly a huge financial setback for Nikon.

They will be insured. In the end, such problems can be much less damaging than you might think.

Now how do you insure for loss in production? Estimated impact to our business performanceThe impact of the flood on our business performance for the financial period ending March 31, 2012 has been estimated, within the scope of our current findings and understanding, to push down net sales by 65 billion yen and operational income by 25 billion yen .

Inexpensive labor is one thing but building your plant in a flood zone is quite another. I suspect there will be some serious changes at Nikon.

I think they will diversify their production sites a little more.

--
Bob

--
Steve Bingham
http://www.dustylens.com
http://www.ghost-town-photography.com

 

[Steve Bingham]

. . . well the new DX lenses as well as the D800 were setup for manufacturing in Thailand. Building a new factory to do both these things will take considerable time - and serious loss of revenue from not having these on the shelves to sell.

3rd Nikon announcement. A small segment:

Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012."

Oh I'm not so sure. They could also mean that production in Thailand will be back to normal in 2012. Besides, it's not like there's no production at all. We don't know how much of Nikons production came from Thailand so there's no telling how well Nikon can compensate for the temporary loss of the factory.

Jarno
--
Photos at http://jarno.smugmug.com

--
Steve Bingham
http://www.dustylens.com
http://www.ghost-town-photography.com

 

[Cultured Vulture]

Insurance can only cover the damages (or part of them, unless the insurance company goes bankrupt) whereas the lost income is something Nikon's owners will have to digest. 300million euros is not a small amount of money.

While I have no knowledge if Nikon had a policy. Business interuption insurance would cover loss of production and subsequent damages due to loss of sales.
--
Regards,

JR

 

[bobn2]

3rd Nikon announcement. A small segment:

"We are planning to start production at other Nikon group manufacturing plants and our partner factories in Thailand one after another from December 2011. Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012."

This tells me we might well have to wait until next Summer for that new DX lens and D800.

The D800 will in any case most probably be built at Sendai.

No. It was intended to be build in Thailand.

In which case it will go into production as soon as the plant is running, I would think.
--
Bob

 

[bobn2]

3rd Nikon announcement. A small segment:

"We are planning to start production at other Nikon group manufacturing plants and our partner factories in Thailand one after another from December 2011. Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012."

This tells me we might well have to wait until next Summer for that new DX lens and D800.

The D800 will in any case most probably be built at Sendai. The D400 is the one which will be built in Thailand, along with the lenses. Even then, when you restart a plant, and there's a new model along, it makes sense to restart with that new model, rather than replacing the equipment for the replaced model, so wile there will obviously be a delay, I wouldn't count on the new model delay being anything more than the delay for everything else.

Nikon most probably delayed the launch not because the product development was unfinished but because they needed to devote company efforts to recovery.

This is certainly a huge financial setback for Nikon.

They will be insured. In the end, such problems can be much less damaging than you might think.

Now how do you insure for loss in production?

Of course you can insure for loss of production. Most businesses do.

Estimated impact to our business performanceThe impact of the flood on our business performance for the financial period ending March 31, 2012 has been estimated, within the scope of our current findings and understanding, to push down net sales by 65 billion yen and operational income by 25 billion yen .

On course, it can do nothing but push down sales and income, on the other hand, insurance will cover the factories, lost production and (depending on the policy) employee costs.

In 2002 Triumph Motorcycle's sole factory (at that time) was destroyed by fire. The company was properly insured and within six months they were back in production and now are making more machines than they have ever made. So far as Nikon goes, this is something the company will come through, probably stronger.

--
Bob

 

[260684]

3rd Nikon announcement. A small segment:

"We are planning to start production at other Nikon group manufacturing plants and our partner factories in Thailand one after another from December 2011. Production will partially resume from January 2012 at Nikon (Thailand) Co., Ltd., and production of digital SLR and interchangeable lenses will return to the normal level by the end of March 2012."

This tells me we might well have to wait until next Summer for that new DX lens and D800. This is certainly a huge financial setback for Nikon. Inexpensive labor is one thing but building your plant in a flood zone is quite another. I suspect there will be some serious changes at Nikon.

Steve Bingham
http://www.dustylens.com
http://www.ghost-town-photography.com

Agree. I think they know they are in trouble right now but obviously aren't broadcasting it...

You know, I'm sure I am not the only one but I would not fancy buying anything built in sendai for a good while (if this is indeed where the D800 would come from). I don't fancy any more radiation. Well, maybe unless it was a 24mm 1.4 in a nice gold box.

 

[Petruska]

to other factories to make a living and survive, a loss for Nikon. Plus will all these moves to a new factory, or more, trying to obtain new equipment which a lot of it is probably custom built, retraining workers, etc. I'm going to question the QC of the product that will be coming out eventually. Probably end of 2012 for decent quality new (D800) product to be shipped. There was also talk of moving the pro lines to Malaysia. I haven't ever heard much about what is happening in Japan, are they back to normal production there?

Bob P.

 

[reps2]

They will be insured. In the end, such problems can be much less damaging than you might think.

Will they? Flooding looks very like an Act of God to me?

--
Richard

 

[RedFox88]

. . . well the new DX lenses as well as the D800 were setup for manufacturing in Thailand.

How do you know where a product that does not exist yet is manufactured?!

 

[Steve Bingham]

. . . well the new DX lenses as well as the D800 were setup for manufacturing in Thailand.

How do you know where a product that does not exist yet is manufactured?!

But it does exist and was in the field for some time.

--
Steve Bingham
http://www.dustylens.com
http://www.ghost-town-photography.com

 

[Mike Worley]

The D800 will in any case most probably be built at Sendai. >

I was born in Sendai and, with age, have become less and less reliable. Maybe it's different with electronic devices.

Watashi wa Sendai de umarita.

Mike

 

[xrdbear]

They will be insured. In the end, such problems can be much less damaging than you might think.

Will they? Flooding looks very like an Act of God to me?

In general this doen't apply to insurance. See: http://en.wikipedia.org/wiki/Act_of_God

Brian
Fine Art Print sales of the Isle of Skye at:
http://www.eyeofskye.co.uk/

 

[JimPearce]

These guys understand manufacturing, if nothing else, and their financials have been very strong. Even with the setbacks they're looking at a very good year. Of course, they also need to be able to source the sensor for the D400 - Sony had a plant flooded too.
--
Jim

 

[xrdbear]

I's nice to root for your team but, after a reverse, have a little cry in your beer and move on. If I actually held Nikon shares I might be more worried but I'm fairly confident that my cameras will not stop working if Nikon have a bad patch.

They're not going to go down the drain but even if they did at least your equipment might gain collector status. Optimism, that's what we need. Things could be a lot worse, you might live in Thailand.
--
Brian
Fine Art Print sales of the Isle of Skye at:
http://www.eyeofskye.co.uk/

 

[michaeladawson]

Apparently you've never heard of flood insurance.

--
Mike Dawson