D4rk0n3 used our news submit to tell us that TDK has decided to exit the manufacturing of both CD and DVD media products as part of its on going restructuring process. A board meeting was held on March 8th to find ways restructuring its recording media business and the board concluded that exiting the market was the best option. TDK have also announced the shut down of its European media manufacturing plant in Luxemburg which will come to a halt at the end of May 2006. This will mean a total exit from the manufacturing of CD & DVD recording media market for TDK.
TDK had been looking at various ways of restructuring its problem hit media business but with a sharp drop in prices coupled with high costs of materials it wasn't viable anymore. The TDK board has decided to look at other business models for its recording business. TDK will accelerate its ODM business model or look to a third party supply.
While reviewing the progress of the restructuring and future strategies of the recording media business, TDK has looked for ways to re-strengthen the manufacturing of recordable CD&DVD foundations from various perspectives. However, a sharp drop in market prices of recordable CD&DVDs as well as the increased cost of natural resources has led the recording media business in TDK to serious problems. After studies of measure for re-strengthening manufacturing, the decision of withdrawal from the manufacturing of recordable CD & DVDs that TDK management has made should lead to an improvement and reform of recording media business to change fundamentally the business model. With this decision, TDK will accelerate ODM business model for the current generation of recordable CD&DVD products, or the third party supply. In the domain of blue laser disc, a product much expected to grow in the near future, |
A sad day indeed, their own media was usually quite good.
