SDK to invest Rs.489 crore in Asia plants

Showa Denko K.K. (SDK) plans to invest Rs.489.48 crore ($106 million) to increase the hard disk (HD) media production through expansion and reformation of existing production lines.

It plans to increase the hard disk (HD) media production at its fully-owned subsidiary Showa Denko HD Singapore Pte. Ltd. (SHDS) by installing a new clean room and additional production lines.

SDK is also planning to have SHDS two plants integrated into one in the fall of this year to increase production efficiency. In addition to the expansion at SHDS, SDK will reform production lines at its HD media production sites in Japan (Chiba and Yamagata) and Taiwan to increase productivity. The construction and reform work will be completed by March 2011. As a result, the Showa Denko Group's total HD media production capacity will be increased to 2.50 crore (25 million) disks a month as from April 2011, from 2.20 crore (22 million) disks a month as of the end of March 2010. HDDs, containing HD media, are used in PCs, digital electric appliances and many other applications due to their high storage capacity. Thus, demand for HDDs is expected to grow steadily in the coming years. SDK will continue examining measures to increase its HD media production capacity to meet growing demand in a timely manner.