TDK Corp. said Wednesday it was withdraw from the manufacturing of recordable CD and DVD products.
The company plans to shut down production facilities at its European subsidiary, TDK Recording Media Europe in Grand Duchy of Luxembourg in May. The move will complete withdrawal from the manufacturing of recordable CD and DVD products for the Japanese tech company. It implemented a reorganization of plants in the Chikumagawa area (Nagano, Japan) last year, as part of its plan.
The planned expenses for the withdrawal will cost the company approximately $68.06 million (8 billion yen), TDK said.
TDK has been fundamentally restructuring is recording media business during this fiscal year. While reviewing the future strategies of the recording media business, TDK has looked for ways to strengthen the manufacturing of recordable CD and DVD foundations from various perspectives. However, a sharp drop in market prices of recordable CD and DVDs as well as the increased cost of natural resources has led the recording media business in TDK to serious problems, the company said.
With this decision, TDK will accelerate an ODM business model for the current generation of recordable CD and DVD products, or the third party supply.
In the domain of blue laser disc, a marketthe company expects to grow in the near future, TDK will continue its R&D and manufacturing activities, focusing the latter exclusively on highl value-added products by utilizing the pilot production lines established at the Chikumagawa Tecno Plan in Japan, the company said. TDK will also concentrate its resources on strengthening data storage tape business, which is another core business.
