Jun 03, 1996

Seagate Technology Expands PCBA Operations into Malaysia

Seagate Technology, Inc. (NYSE:SEG), one of the world's largest manufacturers of printed circuit board assemblies (PCBA), today announced the expansion of its PCB assembly operations into Malaysia. The new manufacturing facility will be built in Johor Bahru to support existing operations in Singapore and Batam, Indonesia, and represents an investment of $19 million. Initially employing 1,500 people, this facility will contribute to Seagate's supply of electronic components that are an integral part of every disc drive the company produces.

Located on an 11.3-acre plot in the Senai Industrial Park, the Johor Bahru facility will be near the company's Senoko plant in Singapore from which Seagate's PCBA operations are managed. In addition to its strategic proximity to Senoko, Senai offers a well-developed infrastructure of highly-trained technical professionals in the area of PCB assembly. Construction has begun on Phase I of the Senai project, a 120,000 square foot single-story building, and is expected to be completed by July, 1996. Production is anticipated for August and the facility is expected to produce an initial output of more than 20,000 PCBAs per day.

"Seagate's Senoko and Batam facilities currently produce more than 72,000 PCBAs and utilize nearly 19 million parts daily, but that satisfies only 80 percent of Seagate's growing internal demand for PCBAs," said Ron Verdoorn, executive vice president and chief operating officer of Seagate's Storage Products Group. "Phase I of the Senai facility will allow operations to meet the increased market needs that have resulted from the merger with Conner Peripherals, and prepare us for additional future demands. Output from the new plant will be consumed primarily by disc drive operations in Perai, Malaysia, and Singapore.

"The expansion of our PCBA operations reflects Seagate's commitment to maintaining its leadership position in the global storage industry," added Verdoorn. "The increasing depth of our vertical integration strategy further strengthens Seagate's position as one of the leading suppliers of quality disc drives and components in the world."

Seagate Technology, Inc. is a data technology company that provides products for storing, managing and accessing digital information on the worlds computer and data communications systems. Seagate is the largest independent disc drive and related components company in the world. The company's home page address on the World Wide Web is http://www.seagate.com.