Tuesday, January 27th 2009
Fujitsu Stops HDD Head Production
Japanese electronics firm Fujitsu has decided to closed down its hard disk drive (HDD) head production, to consolidate losses incurred by the business over the recent red quarters. Fujitsu produces HDD heads for both the components industry and its own HDDs. The company said it would book a loss of 5 billion Yen (US $55.8 M) in its investment in a manufacturing facility at Nagano, north-west of Tokyo.
The said facility will continue manufacturing other drive components such as circuit boards, while employees working for drive-head production will be moved to other jobs. While production of drive-heads will stop in March, the company is in talks with several companies over selling off its entire HDD business, according to company spokesperson Takashi Koto, without disclosing the names of the companies on table. Toshiba comes up as a prospective buyer. It has confirmed that it is in talks with Fujitsu over the sale of a business.
The said facility will continue manufacturing other drive components such as circuit boards, while employees working for drive-head production will be moved to other jobs. While production of drive-heads will stop in March, the company is in talks with several companies over selling off its entire HDD business, according to company spokesperson Takashi Koto, without disclosing the names of the companies on table. Toshiba comes up as a prospective buyer. It has confirmed that it is in talks with Fujitsu over the sale of a business.