Xerox plans to reduce its dependence on Fujifilm and is seeking new suppliers.

(Reuters)- Xerox announced on Monday that it will begin purchasing products from new suppliers to reduce its dependence on Fujifilm and may not renew its technology contract with the 56-year-old Fuji Xerox joint venture.

Fujifilm sued Xerox for more than $1 billion last week, accusing the printer and copier maker of giving in to pressure from investors Carl Icahn and Darwin Deason to cancel a merger plan agreed upon in January.

"Fujifilm's actions have forced us to move forward on several fronts to protect our supply chain," Xerox said in a statement.

Fuji Xerox, 75 percent owned by Fujifilm of Japan and the remaining 25 percent by Xerox, handles contracts that provide global customers with Xerox services in the United States and Europe, as well as Fuji Xerox services in Asia. Furthermore, Xerox no longer assembles its own office copiers, preferring to rely primarily on Fuji Xerox.

The joint venture has existed in various forms since 1962, and the current structure dates from 2001. The terms of the regional coverage expire in March 2021.

"We will detail for our shareholders the tremendous opportunity for Xerox to sell products directly to the growing Asia Pacific market, with the sole and exclusive use of the valuable Xerox name, and a more efficient and better-managed supply chain than exists today at Fuji Xerox," said Xerox.

Xerox stated in February that exiting the joint venture would require a complete rebuilding of its supply chain, which would be extremely expensive and take years to accomplish.

Fujifilm could not be immediately reached for comment.

Shigetaka Komori, CEO of Fujifilm, said earlier this month that Xerox relies on Fuji Xerox to produce almost all of the company's copiers in the U.S. and, unlike Xerox, the company can grow on its own.