SDK to merge HD media subsidiary

Showa Denko K.K. (SDK) has decided to merge its wholly-owned subsidiary Showa Denko HD K.K. to further strengthen its hard disk (HD) media business. This will be effective on November 1. Since SDK now owns 100 percent of shares in Showa Denko HD K.K., there will be no issuance or allocation of new shares.

SDK currently produces and sells aluminum substrates for HD media at its Oyama Regional Office. SDK also sells HD media produced by Showa Denko HD K.K. and conducts R&D work.

By integrating the substrate-media production in Japan through the merger of Showa Denko HD K.K., SDK aims to further establish its technological and marketing advantages. SDK will also enhance efficiency of its HD media business by integrating development, marketing and production functions.

Demand for HD media is growing rapidly. Applications for HD media include consumer electronics that require large storage capacity, such as mobile music players and DVD recorders, in addition to demand for conventional PC applications.