NewsBy FilmFocus
Kodak Reportedly Set to Temporarily Shut Down Its Film Production Line
This is an AI translation of an article originally published in Japanese. If anything reads oddly, the Japanese original is the authoritative version.
Kodak plans to bring its film production line to a complete, temporary halt in November, it has emerged. The move is part of an effort to modernize the factory, and the aim appears to be to overhaul the production equipment so the company can keep up with growing demand.
How Kodak's film production is organized
After its bankruptcy in 2012, Kodak sold its consumer film business to Kodak Alaris. The film itself, however, is still manufactured by Eastman Kodak Company. In other words, Kodak Alaris handles sales while Eastman Kodak continues to do the manufacturing. The comments in question were made during Eastman Kodak Company's latest earnings announcement.
What the CEO said
Kodak CEO Jim Continenza made the following remarks on the company's most recent earnings call:
"Our film sales have increased on motion picture and in still film and other films. So on film, we’re doing a shutdown in November, total shutdown. We’ve continued to invest in our manufacturing process. Well, we need to shut down completely to bring light into the dark, right? Film is made in the dark. So in November, we will be modernizing the plant, putting more investment within that, which has also caused us to use more cash in the quarter to build up inventories, while we do this. But if we continue to see our commitment and our customer commitment to film, still in motion picture, we are going to continue to invest in that space and continue with that growth."
Kodak says it will build up inventory ahead of the shutdown to cover the gap, but all eyes will be on whether the work is completed on schedule.
The earnings call a year earlier
On the earnings call held a year earlier, on August 9, 2023, Continenza said the following:
"We recently renewed our supply agreement for film with our long-term customer, Kodak Alaris in a deal that will run through 2028. We are committed to manufacturing film as long as there is demand from the filmmakers and photographers worldwide."
"In addition, we continue to see growing demand in our still in motion picture film business. A great example of the ongoing relevance of film as an artistic medium is Christopher Nolan's Oppenheimer, which was shot on Kodak large-format film, including both color film and a 65-millimeter black and white film created by Kodak."
These remarks also suggest that Kodak remains strongly committed to making film. Rising demand for film in the movie industry, along with renowned directors such as Christopher Nolan choosing Kodak stock, seems to be a major source of encouragement for the company. Wes Anderson is another director known for his fondness for Kodak film.
Will film supply be affected?
This temporary production halt could affect the supply of film on the market. However, Kodak says it has secured ample inventory in advance, so a major shortage is expected to be avoided. Even so, film enthusiasts are worried about temporary shortages and price fluctuations.
Summary
While Kodak's decision raises concerns about possible film shortages in the short term, in the long run it looks like a sign of the company's strong commitment to the film market. We hope that modernized equipment and increased production capacity will put Kodak in a position to keep supplying high-quality film reliably for years to come.