Canon today confirmed plans to build a new camera factory in Japan to cope with rising demand for digital SLRs and compact cameras.

The firm plans to invest the equivalent of around £80m in the plant by the end of 2010. The factory will be located at Higashi Sonogi-gun in Nagasaki.

A Canon Japan spokesman said the expansion was necessary owing to a ?pressing need? to expand production capacity for digital SLR and compact cameras.

Building work will start next January and production is due to start in December 2009.