Connect with us

Hi, what are you looking for?

New Products

TDK Exits CD and DVD Disc Business

TDK Corporation Announces Withdrawal From the Manufacturing of Recordable CD&DVD Accelerating the Restructuring Recording Media Business

TDK Corporation (NYSE:TDK) announced today that the board of directors decided at the board meeting held on March 8, 2006, to further accelerate the restructuring of recording media business, to withdraw from the manufacturing of recordable CD&DVD products in TDK group. Consequently, TDK decided to shut down the production facilities at its European subsidiary, TDK Recording Media Europe in Grand Duchy of Luxembourg. The shut down is planned to take place at the end of May 2006. This decision completes TDK’s withdrawal from the manufacturing of recordable CD & DVD products, coupled with the reorganization of plants in Chikumagawa area (Nagano, Japan) implemented at the end of last year.

TDK Corporation and its group companies (hereinafter called “TDK”) have been fundamentally restructuring the recording media business during this fiscal year. While reviewing the progress of the restructuring and future strategies of the recording media business, TDK has looked for ways to re-strengthen the manufacturing of recordable CD&DVD foundations from various perspectives. However, a sharp drop in market prices of recordable CD&DVDs as well as the increased cost of natural resources has led the recording media business in TDK to serious problems. After studies of measure for re-strengthening manufacturing, the decision of withdrawal from the manufacturing of recordable CD & DVDs that TDK management has made should lead to an improvement and reform of recording media business to change fundamentally the business model.

With this decision, TDK will accelerate ODM business model for the current generation of recordable CD&DVD products, or the third party supply.

In the domain of blue laser disc, a product much expected to grow in the near future, TDK will continue its R&D and manufacturing activities, the latter exclusively focused on highly value-added products, by utilizing the pilot production lines established at Chikumagawa Tecno Plan in Japan. TDK will also concentrate its resources on strengthening data storage tape business, which is another core business.

Through implementation of a series of restructuring activities, TDK will improve the business structure of recording media business all at once, seek improvement of efficiency and profitability for the future, and accelerate changes in the business structure and development of core products.

Estimated Impact to the forecast profit for this fiscal year

The planned expenses needed in relation to the announced withdrawal from the manufacturing of CD and DVD will amount to approximately 8 billion yen.

About TDK Recording Media Europe S.A.

  1. Location: Bascharage, Grand Duchy of Luxembourg
  2. President: Mr. Toru IDE
  3. Established: in 1990
  4. Paid-in Capital: Euro 82,846,016
  5. Parent and shares: TDK Europe S.A. 100%, TDK Europe S.A. is a TDK’s wholly owned company.
  6. Number of Employees: 431
  7. Products and capacity: CD-R 7 Million Pcs./month, DVD-R/+R 8 Million Pcs./month

Data as of end Feb. 2006

About TDK Corporation
TDK Corporation (NYSE:TDK) is a leading global electronics company based in Japan. It was established in 1935 to commercialize “ferrite,” a key material in electronics and magnetics. TDK’s current product line includes ferrite materials, electronic components, wireless computer networking products, magnetic heads for HDD, and advanced digital recording media. For more information about TDK, please visit http://www.tdk.co.jp/tetop01/index.htm

Advertisement. Scroll to continue reading.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Latest Products

Final UX3000 SV Headphones in black

New Products

Final’s new UX3000 SV wireless headphones debut with hybrid ANC, voice-first tuning, aptX HD, and 35-hour battery life—crafted in Japan for clarity.

McIntosh MTI100 Sun Records Edition Integrated Turntable Top Angle View McIntosh MTI100 Sun Records Edition Integrated Turntable Top Angle View

New Products

McIntosh MTI100 Sun Records Limited Edition: integrated turntable with tube preamp, Bluetooth, and rare Johnny Cash vinyl for true audiophiles.

Shanling EC Zero T Portable CD Player Shanling EC Zero T Portable CD Player

CD Players

Shanling’s EC Zero T brings hybrid tube/solid-state sound to a portable CD player with R2R DAC, Bluetooth 5.3, and high-end headphone amp—CDs just got...

Bowers & Wilkins 801 Abbey Road Limited Edition Loudspeakers Pair Front Angle Bowers & Wilkins 801 Abbey Road Limited Edition Loudspeakers Pair Front Angle

Floorstanding Speakers

The $70,000 Bowers & Wilkins 801 Abbey Road Limited Edition channels 45 years of studio history into a luxury speaker built on the 801...

Noble Van Gogh IEMs Noble Van Gogh IEMs

Earbuds & In-Ear Headphones

Noble Van Gogh IEM combines a unique hand-finished design with a four-driver hybrid setup, delivering bold, textured sound and premium build at a competitive...

Woman wearing Soundpeats Air5 Pro Wireless Earbuds Woman wearing Soundpeats Air5 Pro Wireless Earbuds

Earbuds & In-Ear Headphones

SOUNDPEATS Air5 Pro wireless earbuds deliver flagship features like Snapdragon Sound, AI ANC, and LDAC—all under $80. Your budget AirPods alternative for 2025.

Gift Ideas?

Father's Day Gift Guide 2024 Best Tech and HiFi Gifts

Gift Guides

Upgrade Dad's digital lifestyle with gifts he'll enjoy all year and beyond this Father's Day. New Hi-Fi, Headphones, Home Theater and more!

You May Also Like

Advertisement

ecoustics is a hi-fi and music magazine offering product reviews, podcasts, news and advice for aspiring audiophiles, home theater enthusiasts and headphone hipsters. Read more

Copyright © 1999-2024 ecoustics | Disclaimer: We may earn a commission when you buy through links on our site.



SVS Bluesound PSB Speakers NAD Cambridge Audio Q Acoustics Denon Marantz Focal Naim Audio RSL Speakers