FUJIFILM Holdings Corp said yesterday it will shift production of its digital cameras to China to cut costs as it restructures its struggling camera operations.

In the meantime, the Japanese company will stop mass producing digital cameras in its own country and dissolve Fujifilm Photonix Co, a wholly owned subsidiary.

It will also outsource production of charge coupled devices - image-capturing chips used to make the image sensors in its cameras - to Toshiba Corp.

Fujifilm, the world's seventh-largest digital camera maker in 2006, forecast its digital camera sales will reach to eight million units for the business year ending March 2008. Fujifilm sold 6.6 million digital cameras in the past business year.