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WD ramps Malaysia operations

Posted: 28 Oct 2011 ?? ?Print Version ?Bookmark and Share

Keywords:hard disk drive? Malaysia operations? Thailand floods? disk drive market?

Western Digital Corp. (WD) is planning to ramp up the production of its facilities in Malaysia to compensate for the shortage in stocks because of the flooding in Thailand.

The company's Thailand operations will not continue until the flood waters recede and WD is already exploring options on how to expedite its recovery process. They are willing to work with suppliers to remove or to transfer its production equipment to other sites.

WD has to manufacturing facilities in Malaysia, one is located in Bayan Lepas Free Industrial Zone in Penang while the other is in Sungei Way Free Industrial Zone in Selangor.

"We are ramping up the Malaysian facilities to full capacity and pursuing options at other locations," said Margaret Koh, WD's director of sales for Asia South

The company is expecting the Thailand situation to have a significant impact on its overall operations and its capability to meet consumer demands. Its Thailand facilities account for around 60 percent of its global HDD supply.

Thai floods cause chain reaction in market supply
Thailand's floods have forced some HDD manufacturers to temporarily cease their operations. This is seen to affect not only the HDD market supply but the PC market as well. Read the story here.

"Our regular capacity will be significantly constrained. Our current focus is on the well-being of our employees and satisfying the needs of our customers," Koh added. WD has warned that price increases are inevitable with the disk drive shortage expected to linger well into 2012.

WD CEO John Coyne was quoted in various online reports stating that the company's December quarter revenue will fall 60 percent from a year ago and recovery is expected to be a "multiquarter task."

The company has also revealed that its customers have about two weeks of inventory on hand and distributors have around four weeks' worth of supplies.





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