The spend of around ¥5.1bn (£25.4m) is being made by Seiko Epson Corporation subsidiary Tohoku Epson at its site in Japan.
Epson said it expected growing demand for inkjet printers in key markets including home, office, and commercial and industrial printing.
Epson also pointed to a technology shift from analogue to digital in sectors where the printing media is not paper, such as digital textile printing.
“Epson expects further growth in the use of PrecisionCore printheads in commercial and industrial printers as well as in inkjet multifunction printers with high-speed lineheads,” the firm stated.
“Epson is strengthening its printhead sales business to accelerate inkjet innovation and expand the applications for digital printing, which has a far lower environmental impact than conventional printing.”
Epson also highlighted the potential for other emerging applications in electronics and bioprinting.
“Epson is looking to collaborate with partners with new ideas and technologies. Through such open innovation, we are seeking to expand the possibilities of PrecisionCore technology.”
A ground-breaking ceremony for the new factory was held today (12 June), with construction set to begin at the weekend and completion expected in September 2025.
The factory will have a total floor space of 11,191sqm over two floors, and is being constructed on space that is already available at Tohoku Epson’s 540,000sqm site.
Epson’s existing manufacturing facilities make extensive use of its own robots.
The company said the new factory would employ a newly engineered process that will “save manpower and space”.
In-process inventory will be minimised, and the use of automated transfer robots and an efficient layout will reduce the workload on personnel.
“We will respond to the challenges faced by the manufacturing industry, and realise a factory of the future that is both more efficient and easier to work in.”
Around 70 new jobs will be created.
Tohoku Epson currently employs 2,130 people.
Printing Solutions is Epson’s biggest business unit, accounting for nearly 70% of its ¥1,314bn sales last year.
