Tokyo: Canon Inc. said Friday the recent recovery of the digital camera market would allow it to start building a new factory after a seven-month delay brought about by the global economic slump.

“A careful review of recent market and economic conditions by the company indicates that the digital SLR (single-lens reflex) camera market is recovering steadily,” the company said in a statement.

Construction of the factory in southern Nagasaki prefecture would start in July, and operations would begin in April 2010, said the high-tech photographic and office-equipment maker.

The factory, which will produce 4 million cameras annually, will employ as many as 1,000 workers.

Construction had been due to begin in January, and the factory was to become operational in December.

The start of construction was delayed twice as the global recession battered Japan, pushing companies including Canon to slash jobs and shut factories.

Canon, hailed as a success story in Japan’s recovery from the 1990s recession, saw its profits plunge last year. The company has said it is braced for another tough year but expects to stay profitable.