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Seagate to invest $281M in new Malaysian plant

Posted: 12 Dec 2006 ?? ?Print Version ?Bookmark and Share

Keywords:hard drive? hard disk drive? HDD? manufacturing plant? Seagate Technology?

Seagate Technology said it will invest $281 million in a new plant in Johor, Malaysia, to meet an anticipated surge in global demand.

The aluminum substrate manufacturing facility, Seagate's first in the region, will employ about 2,500 workers when it reaches maximum capacity. The plant is expected to move into production by 2008.

The hard drive maker said the 40,000sqm facility, which will complement an existing substrate operation in Northern Ireland, would supply a "large portion" of the company's requirements for aluminum substrates, which represent the base platters for hard-disk drive assembly.

The proximity of the plant to the technical expertise housed in Seagate's existing printed circuit board assembly plant in Johor and media manufacturing facilities in Singapore would help the company "efficiently feed its regional disk drive assembly operations," Seagate said in a statement last week.

The announcement came a day after Seagate CEO Bill Watkins said Seagate would invest $200 million over the next three years in Penang, Malaysia, the company's production center for thin-film magnetic recording heads.

- Jonathan Hopfner
EE Times

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