Prodisc Technology opens new CD-R disc factory in China


More media related news today as DigiTimes reports us that Prodisc Technology, one of the top three producers of optical storage media in Taiwan, has announced that they have opened a factory for blank CD-R discs China today.

According
to the article, the new factory will initially have 30 production lines for a monthly capacity of 30 million CD-R discs, but this will gradually be expanded to no less than 60 million CD-R discs. The Prodisc factory may later also produce DVD-R discs and optical components:

The factory is owned and operated by Prodisc Technology (Ningbo). With total investment of US$ 70 million, the company is a joint venture with Prodisc holding a 49% stake, parent company president Tony Hsu indicated. Hsu is now in Ningbo to attend the opening ceremony.

The factory’s products can be exported or sold in the domestic market with payment of 2% tax on imported materials and components, Hsu noted. The factory’s production will focus on OEM production for the European market and production for domestic sale under Prodisc’s own SmartBuy brand.

Prodisc’s investment in China was prompted because further expansion of its CD-R disc capacity in Taiwan is costly, back-end printing and packaging demands significant labor and China has large market potential, Hsu explained.

In addition to its China investment, Prodisc has invested NT$ 4.0 billion to establish DVD+R/-R disc production lines in the second half of this year and plans to expand this capacity with an additional outlay of NT$ 4.0 billion in 2004.


The DigiTimes article adds that including this new factory, Prodisc will have
a total production capacity of 140 million CD-R discs a month. This means
that they’re now the third-largest among Taiwanese makers next to CMC
Magnetics (170 million discs) and Ritek (150 million
discs).

Source: DigTimes