KUALA LUMPUR, 27 MAY 2009 – Hard-drive manufacturer Western Digital (WD) has sold its manufacturing facility in Sarawak, Malaysia, to a subsidiary of Hitachi Global Storage Technologies, the hard-drive manufacturing unit of Hitachi Ltd.
WD president and chief executive officer John Coyne said the company would maintain its operations in Penang and Johor. “The employees of WD at the Sarawak facility will become employees of the purchaser in the current quarter.”
"We are very pleased that, rather than closing this plant, which was surplus to our needs, we have identified a qualified buyer which will continue to operate the facility," said Coyne. "WD worked closely with Hitachi GST, the government of Sarawak and its local agencies to create a solution that preserves operations at the Kuching location, as well as the jobs of the employees and those in supporting industries, which have a large impact on the local community."
This move followed WD’s announcement in December 2008 that it was taking actions to realign its cost structure to match a softer demand environment. “This divestiture is one of those steps,” he said.
“The Sarawak facility, at which WD manufactured aluminum substrates for hard drive magnetic media, was acquired by WD as part of its acquisition of Komag in September 2007,” Coyne said. “WD is consolidating substrate operations from the Sarawak facility into its other substrate facility in Johor, Malaysia. WD will continue to manufacture the majority of its magnetic media requirements at existing facilities in Malaysia and source the balance of its media needs through its strategic external partners.”
