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Hitachi Moves to Consolidate

SAN JOSE, Calif. -- Hitachi Global Storage Technologies (Hitachi) is today announcing a series of manufacturing and development consolidations that represent a key initiative of the companys plan to achieve and maintain business excellence. These changes are expected to result in a potential savings of nearly $300 million (USD) over the next five years by streamlining operations and maximizing efficiencies.

Through the planned consolidations, Hitachi will create “centers of competency” for the development and production of sliders, head-gimbal assemblies (HGA) and media(1) – three of the most critical components in the manufacturing of hard disk drives (HDD). Hitachi’s state-of-the-art manufacturing facilities, primarily based in Asia, are being customized to create an even higher level of specialization and reliability for these hard drive components. In addition, centralized development will accelerate the implementation of future hard drive technologies, such as patterned media and thermally-assisted recording.

“Manufacturing and development consolidation is one of the top initiatives we are undertaking to achieve long-term business health and to underscore Hitachi’s commitment to the hard drive business,” said Hiroaki Nakanishi, chief executive officer, Hitachi Global Storage Technologies. “This strategic manufacturing plan will not only improve Hitachi’s competitiveness, but will also benefit our customers by gaining greater supply flexibility, more advanced technologies and faster time to market.”

Hitachi Global Storage Technologies (Hitachi GST)