Digitimes is reporting that major CD-R producers are moving their production to Europe and the United States instead of Asia, where most discs are produced now.
Reasons for this are lower shippings costs, the European anti dumping tariff and to offer local supply and services to major customers:
In the past, both CMC and Ritek avoided the topic of overseas expansion, but now that market conditions have changed they have revealed a little more. Bob Wong, chairman of CMC Magnetics, said they have already established production sites in the UK, Ireland, the US, Mexico and Hong Kong. Chwei-jing Yeh, CEO of Ritek, said they are currently expanding at facilities in Europe to achieve a monthly capacity of 20 million CD-R discs. |
Yeh also mentioned that Ritek will not increase capacity in Taiwan. According to sources, its factory in Hukou, Taoyuan County, will shrink monthly CD-R disc capacity by 20 million units, falling between 80 million and 100 million units. Its new factory in Miaoli County can produce 50 million to 60 million units a month. In the future, Ritek will prioritize overseas expansion. Production lines that are left open in Taiwan will be used for high-end DVD-R and DVD-RW discs.
I just wonder if this also means the CD-R's will be more expensive, will the lower shipping costs weight up against the higher loans in Europe and the United States...
Source: Digitimes.com
