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November 7, 1993

FUJITSU’s 3.5″ DRIVE MANUFACTURE TO GO TO THAILAND TO REDUCE COSTS

By CBR Staff Writer

Everyone making disk drives is bleeding as a result of the cut-throat price war still raging, and Fujitsu Ltd announced that it will transfer production of its main linehard drives to its Thai subsdiary to boost the products’ price competitiveness. It plans to produce its new series of 3.5 drives, just announced (CI No 2,289) at Fujitsu Thailand from next month and is aiming for monthly production of 80,000 drives. To cut costs further, about 65% of the components for the drives will also be acquired from Asian manufacturers. It is currently losing money on disks, but looks for profit this fiscal year as a result of the moves. Only 6% of parts for the disk drive division came from outside Japan in September, but by March 1995, the company intends that this will have soared to 40%.

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