Dec 09, 2011

Seagate Thailand Invests 1 Billion Baht To Expand Its Operations In Thailand

BANGKOK, Thailand - Seagate Technology (Thailand) Limited, the world leader in hard disk drives and storage solutions, announced today an investment of about 1 billion baht (US$30 million) with the opening of a new building for read-write head manufacturing at its Korat facility.

The 1 billion baht project includes the construction of the new building and equipment. This new building is more than 29,800 sq.m and is scheduled to be in operation in February 2012. The new facility will potentially create several thousand new jobs when the plant is fully operational and running at maximum production capacity.

Mr Jeffrey D Nygaard, vice president and country manager, Penang & Thailand Operations, Seagate Technology (Thailand) Limited said, “Seagate’s continued capital investment and transfer of new, leading-edge technologies and products into Thailand is a demonstration of our commitment to maintain a strategic presence here. We will work closely with the government and the local community to bolster economic growth for the country.

“With this new investment, we will be able to increase current read-write head production by up to 40%, running at maximum capacity. It will serve the increasing world market demand for hard disk drive storage,” Nygaard said.

The company’s component and disk drive factories in Thailand have not been directly affected by the flood; however, the company’s ability to manufacture hard disk drives has been impacted due to external component supply constraints as first disclosed on 12 October, 2011.

The company continues to believe that, due to the industry impacts caused by the extensive flooding in Thailand, hard disk drive supply will be significantly constrained for several quarters. For the December 2011 quarter, the company believes the industry will ship between 110-120 million units. The company believes the industry’s ability to manufacture and ship hard disk drives will gradually improve throughout calendar 2012.

Seagate Korat was established in 1996 to manufacture three major hard drive components—slider, head assembly and head gimbal assembly—as well as final drive assembly. Based on Seagate’s financial report ended on June 2011, the cumulative investment in Seagate’s Korat and Teparuk operations is 38 billion baht. The plants in both Teparuk and Korat employ more than 16,000 employees, including more than 700 engineers.

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