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Ricoh enters the X-ray inspection systems market for the food sector

- Establishes a joint venture with X-ray inspection systems manufacturer XAVIS -

April 17, 2019

TOKYO, April 17, 2019 - Ricoh Co., Ltd. (President & CEO: Yoshinori Yamashita) today announced that it will enter the X-ray inspection systems market for the food sector. Ricoh concluded an agreement with the South Korean X-ray inspection systems manufacturer, XAVIS Co., Ltd. (President: Kim Hyeong Cheol) to establish a joint venture for the development and marketing of X-ray inspection systems. Sales of X-ray inspection systems will commence in FY 2019 ending March 31,2020, mainly targeting the food sector in Japan. Further, harnessing the technologies and know-how of both companies, Ricoh and XAVIS will work on the development of a next-generation multifunctional inspection system with higher detection capabilities.

With the need for food safety increasing worldwide in recent years, the HACCP* (Hazard Analysis and Critical Control Point) method of public health management, which requires food business operators themselves to control the process from the arrival of raw materials to the shipment of products, is being introduced in many countries. Also, in Japan, the amended Food Sanitation Act was announced in June 2018, making it mandatory for food-related business operators to implement HACCP. Even in small and medium-sized businesses, stricter regulations are expected to accelerate the introduction of inspection systems that detect foreign matter and packaging defects, and the global market for X-ray contaminant inspection systems for food products is expected to maintain a stable average annual growth rate of 8% from 2018 to 2023 (company's estimate).

Founded in 2002, XAVIS is highly competitive in South Korea's X-ray inspection systems market on account of its advanced technical capabilities, and is expanding its market share, primarily in leading food, electronics and semiconductor manufacturers. At the same time, Ricoh's strengths in optical and image processing technologies enable it to deliver products and solutions that offer customers a sense of safety and security, including industrial cameras and lenses, automotive cameras, various types of sensors, and production management systems.

Through this latest joint venture, from FY 2019 with the cooperation of XAVIS company Ricoh will market X-ray inspection systems for the food-related market in Japan under Ricoh brand. Furthermore, by combining X-ray inspection systems from XAVIS with Ricoh's optical and image processing technologies, the both companies will develop and commercialize a next-generation multifunctional inspection system that supports complex inspections with higher detection accuracy.

In addition, the need is expanding for a reliable and safe method of inspection to identify internal defects in industrial products such as lithium-ion batteries and electronic substrates, which are increasingly in demand for electric vehicles and mobile devices. The new company will gradually expand its business areas not only in the food sector but also in the industrial field in order to meet this demand.

Ricoh will continue to meet the ever increasing demands for safety and security in all industrial sectors.

Overview of the joint venture company

1. Company name
RICOH Tech Vision Inc.
2. Establishment
April 2019(TBD)
3. Capital
150 million yen
4. Address
5. Representative
Kazuo Suganuma(TBD)
6. Business
Development, manufacture, and sales of X-ray inspection systems and related systems and software
HACCP (Hazard Analysis and Critical Control Point): A method of public health management that ensures the safety of products by requiring food-related business operators themselves to identify potential hazards such as food poisoning bacteria and foreign body contaminants, and then control the processes that are especially important for the elimination or reduction of those hazards throughout every stage of the chain, from the incoming of raw materials to the shipment of products. Announced by the food standards setting body Codex, a joint agency of the Food and Agriculture Organization of the United Nations (FAO) and the World Health Organization (WHO), HACCP is an internationally recognized initiative recommended to be adopted by each country.

Overview of XAVIS Co., Ltd.

XAVIS Co., Ltd., headquartered in Korea, develops, designs, produces and sells X-ray systems. Since its establishment in 2002, it has won many awards as a promising SME that contributes to industrial development in Korea, and listed on KONEX in 2015. In the Korean market, XAXIS holds the high share of food and medicine X ray inspection machines.

About Ricoh

Ricoh is empowering digital workplaces using innovative technologies and services enabling individuals to work smarter. For more than 80 years, Ricoh has been driving innovation and is a leading provider of document management solutions, IT services, commercial and industrial printing, digital cameras, and industrial systems.
Headquartered in Tokyo, Ricoh Group operates in approximately 200 countries and regions. In the financial year ended March 2018, Ricoh Group had worldwide sales of 2,063 billion yen (approx. 19.4 billion USD).
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