The deal gives Fuji a 75% stake in Fuji Xerox, which was formed in 1962 to market Xerox copiers to Japan and other Pacific Rim countries.

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Fuji Xerox, which now buys only 3% of its supplies online, reckons that number will jump to 80% once its new system is installed in July.

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Although still in its infancy, electronic procurement is also starting to take off, with companies such as Canon and Fuji Xerox shifting their procurement to the Internet.

ECONOMIST: Corporate restructuring

Ideally, Fuji Xerox wants customers such as stockbrokers, engineering firms and government agencies, which order dozens or even hundreds of copies of a single report or catalogue.

ECONOMIST: Electronic books

The association's new chairman, Yotaro Kobayashi, might even keep up his reforming zeal: he became president of Fuji Xerox, which makes photocopiers, at the tender age of 44.

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In a research note today, Reitzes notes that his Japan-based colleague Masahiro Nakanomyo contends that Canon and Fuji Xerox could be facing shortages of toner material starting next quarter.

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Beans will be turned into chocolate on Tcho's elaborate production line, which is being used as a test-bed for remote video-monitoring of industrial processes by researchers at Fuji Xerox in Palo Alto.

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The first to do so in Japan is Fuji Xerox, which in May started a publishing-on-demand venture that lets customers browse through publications on its website and pick the material they want.

ECONOMIST: Electronic books

Previously, Xerox and Fuji had equal stakes in the company.

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