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Lake Forest's Western Digital sells Malaysian manufacturing plant
Move is part of company's plan to realign its cost structure.
By Kristen SchottPublished: May 21, 2009 10:08 AM
Lake Forest-based Western Digital is selling the assets of its manufacturing facility in Sarawak, Malaysia, to Hitachi Global Storage Technologies, the hard drive production arm of Hitachi Ltd.
The Sarawak plant develops media substrates, which are the parts of a
disc that store data in a drive, and its employees will become a part
of Hitachi.
The move is part of Western Digital's plan to realign its cost structure in response to the tough economic climate. Western Digital reported revenue of $1.6 billion during its fiscal third quarter, which ended in March of this year. The number is down from $2.1 billion at the same time last year. The company also reported net income of $50 million, compared to $280 million in March 2008.
Western Digital is consolidating its substrate operations from the plant, which the company acquired in 2007 from Komag Inc., into its other facility in Johor, Malaysia. The company will continue to produce most of its magnetic media needs at currently open centers throughout Malaysia, and it will source the rest of its requirements through external partners.
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The Sarawak plant develops media substrates, which are the parts of a disc that store data in a drive, and its employees will become a part of Hitachi. The move is part of Western Digital's plan to realign its cost structure in response to the tough economic climate. Western Digital reported revenue of $1.6 billion during its fiscal third quarter, which ended in March of this year. The number is down from $2.1 billion at the same time last year. The company also reported net income of $50 million, compared to $280 million in March 2008. Western Digital is consolidating its substrate operations from the plant, which the company acquired in 2007 from Komag Inc., into its other facility in Johor, Malaysia. The company will continue to produce most of its magnetic media needs at currently open centers throughout Malaysia, and it will source the rest of its requirements through external partners. NEXT PAGE >> Related headlines 'OC METRO Minute,' May 21: Vizio files lawsuit against Funai Irvine's eMachines launches compact desktop PC line Listen up! Ultimate Ears launches UE 4 Pro Custom Irvine's Vangard Voice Systems seizes Excalibur |
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