Nikon is investing $160M in a new lens factory for high-end lenses

Nikon is investing $160M million, or ¥25 billion, to renovate its lens manufacturing facilities. The plan is to consolidate the divided existing facilities into two new buildings in the Tochigi Nikon factory. This means the production teams will all work in Otawara instead of being spread throughout the Tochigi prefecture. But why did Nikon choose to do this?

The current state of the camera world

The camera market is changing. Although mirrorless cameras had record-breaking sales just last year, the demand for cameras has continued to decline over the years. According to Nikkei and the Camera & Imaging Products Association (or CIPA for short), digital camera sales have dropped about 90% in the last 15 years. So why on earth would a company like Nikon invest more in the camera market if such a trend is continuing?

The reasoning became apparent when the differences in the new factories were revealed. Unlike the current facilities, the new factories will focus more on high-end lenses, not cameras, while still being able to adjust themselves to market fluctuations. This means the production lines will be able to flexibly change production items to account for the state of the market. If high-end lenses sell better, the factories will focus on those. If the demand for a new camera, like the Nikon Z8, is unexpectedly high, the factories will adjust to answer that demand. The change from the different facilities to the factories in Otawara City is expected to be done by March 2028.

[via Nikonrumors]