Sep 28, 2006
The project includes construction, building and equipment spread over the next four years, and will potentially create 3,000 new jobs when the plant is fully operational and running at maximum production capacity. Manufacturing activities are expected to start by mid-2008.
"Singapore has been a key strategic site for Seagate and today's announcement essentially establishes the country as Seagate's central media manufacturing hub," said Bill Watkins, Seagate chief executive officer. "We will continue to make strategic investments in Singapore by leveraging established infrastructure and tapping the exceptional pool of technological and human resources this island-nation has to offer. We are also pleased to extend our mutually beneficial partnership with the Singapore government, which has shown tremendous support during the time that we have operated here."
Welcoming Seagate's continuing investments, Mr Teo Ming Kian, Chairman of the Singapore Economic Development Board, said: "We are glad that Singapore remains a key location in the global strategy of the world's largest disc drives manufacturer. In 2005, Singapore already accounted for 25% of the world market share for disc media. With Seagate's new investment into their third media plant, Singapore's lead as a key manufacturing location for hard disc media globally will widen and its ecosystem for hard disk drives strengthened considerably."
Locating the expanded operations close to its existing Woodlands facilities allows the company to leverage technical expertise and resources, and efficiently feed its regional disc drive assembly operations.
"Seagate's vertical integration strategy of owning our component manufacturing capabilities has established us as the industry leader, shipping 119 million disc drives in our past fiscal year," said Jerry Glembocki, senior vice president of Seagate's global recording heads and media operations. "The new facilities will make Seagate in Singapore the world's single largest producer of recording media."
The Woodlands extension will see the construction of a new three-story manufacturing block with a built-up area of about 54,000 square meters, housing Seagate's state-of-the-art equipment and new-generation technologies, including perpendicular recording capabilities.
Initially, the new facility is expected to require an increase in staffing of nearly 1,000 employees. The headcount could potentially grow to 3,000 when the plant is operating at maximum production capacity depending on the global requirement for recording media.
Piling works will start later this year and manufacturing activities on the first production floor are expected to begin in the first half of calendar year 2008.
The Woodlands operation, established in 1996, was Seagate's first Recording Media Operations (RMO) facility outside of North America. It is also the company's largest media manufacturing facility and currently accounts for about 60% of Seagate's internal output of the industry's most advanced disc media. Seagate's other RMO operations are located in Milpitas (USA) and Northern Ireland.
About Seagate Technology
Seagate is the worldwide leader in the design, manufacture and marketing of hard disc drives, providing products for a wide-range of applications, including Enterprise, Desktop, Mobile Computing, Consumer Electronics and Branded Solutions. Seagate's business model leverages technology leadership and world-class manufacturing to deliver industry-leading innovation and quality to its global customers, and to be the low cost producer in all markets in which it participates. The company is committed to providing award-winning products, customer support and reliability to meet the world's growing demand for information storage. Seagate can be found around the globe and at www.seagate.com.
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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements related to the company's future financial performance, including expected revenue and earnings and estimated restructuring, integration and retention expenses resulting from the acquisition and integration of Maxtor, the timeline for the integration of the former Maxtor operations into Seagate, price and product competition, customer demand for our products, and general market conditions. These forward-looking statements are based on information available to Seagate as of the date of this press release. Current expectations, forecasts and assumptions involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks and uncertainties include a variety of factors, some of which are beyond the company's control. In particular, such risks and uncertainties include Seagate's ability to integrate the Maxtor acquisition into its operations successfully and on a timely basis; the impact of the acquisition of Maxtor on the company's financial results, including without limitation due to charges associated with restructuring, purchase accounting and other related transaction costs, and due to shifting of customer demand to the company's competitors or aggressive competitive pricing specially targeted to encourage such shifting; the impact of the variable demand and the aggressive pricing environment for disc drives, particularly in the near term as that may be impacted by delays in new operating system software and new gaming platform hardware systems; dependence on the company's ability to successfully manufacture in increasing volumes on a cost-effective basis and with acceptable quality its current and new disc drive products, particularly in the near term as the company transitions Maxtor demand to Seagate product offerings; the adverse impact of competitive product announcements and possible excess industry supply with respect to particular disc drive products; and the possibility that the combination of Seagate and Maxtor will not provide the anticipated benefits to the combined company on the projected timeline, if at all. Information concerning additional factors that could cause results to differ materially from those projected in the forward-looking statements is contained in the company's Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission on August 1, 2005; in the company's Quarterly Report on Form 10-Q as filed with the U.S. Securities and Exchange Commission on April 28, 2006; and in the company's Form 8-K, as originally filed with the U.S. Securities and Exchange Commission on June 1, 2006. These forward-looking statements should not be relied upon as representing the company's views as of any subsequent date and Seagate undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made.