Production of 2Mb 3.5 floppy disks at the St Petersburg, Russia-based RAD joint venture enterprise, is now running at 120,000 a month. RAD was formed by American company Thames Automation, which has a 30% share, and the St Petersburg-based Radio Equipment Research Institute – VNII Radioapparatury – in co-operation with A/O ConRoss, also of St Petersburg. Magnetic film is supplied by the Japanese company Teijin Co. The firm estimates that the annual market for floppy disks in Russia is 6m units, but says expansion plans are being slowed by a shortage of resources, high taxes, and import duties that do not distinguish between components and finished products.