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Kodak To Cut Manufacturing Operations In U.S. And China

Eastman Kodak said August 25 it was cutting manufacturing operations in the U.S. and China to respond to an "accelerating decline in demand for consumer film and photographic paper." The move will mean the loss of about 900 jobs.

"These actions are regrettable because they impact our Kodak people whose performance has been outstanding, but they are necessary in light of the accelerated declines in consumer film and paper," said Daniel Meek, director of global manufacturing and logistics. "We will continue to move aggressively to competitively position our operations and adjust our manufacturing footprint and capacity for the marketplace realities," he said

Kodak is struggling as it tries to adapt to the rapidly changing shift to digital photography and away from traditional film. The company said it would consolidate color photographic paper manufacturing for North America at plants in Windsor, Colorado, and Harrow, England, and close its plant in Rochester by the end of October. It will also close by year-end an operation in Rochester that recycles polyester waste from film, using outside contractors instead.

Kodak plans to reduce manufacturing capacity for consumer film products at its plant in Xiamen, China.

Copyright Agence France-Presse, 2005

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