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Hitachi to consolidate manufacturing, cut 4,500 jobs

Posted: 26 Mar 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Hitachi Global Storage Technologies? Hitachi GST? cut jobs? HDD? hard drive?

To restore its struggling hard drive business, Hitachi Global Storage Technologies disclosed last week (March 22) it will consolidate manufacturing and cut 4,500 jobs by the end of 2008.

The Hitachi subsidiary has reported annual sales growth, but has reported no operating profits since 2003 when it formed a joint venture with IBM Corp.

Under the consolidation plan, Hitachi said it expects savings of $300 million over the next five years. It predicted that operating profits will return by its next fiscal year starting in April.

"This strategic manufacturing plan will not only improve Hitachi's competitiveness, but will also benefit our customers by gaining greater supply flexibility, more advanced technologies and faster time to market," Hiroaki Nakanishi, CEO of Hitachi GST, said in a statement.

The consolidation plan includes closing facilities in Guadalajara, Mexico and in Odawara, Japan. Production will be centered in: Laguna, Philippines; Shenzhen, China; Prachinburi, Thailand; and San Jose, California.

Last year, Hitachi GST opened its disk drive plant in Shenzhen, which centralizes all aspects of HDD production, including component manufacturing, supplier network, product assembly and final delivery. According to the company, this increases efficiency, speeds time-to-market, and places tighter controls over product quality and delivery.

- Yoshiko Hara
EE Times

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