Taiwan: Optical disc maker Vanguard Disc to close

This
morning at DigiTimes we can read that this disc producer is also seeking equipment buyers. Stating competitive pressure as the reason, the second tier CD manufacturer has decided to close it's doors rather than to continue on any longer. Another factor confirmed by Vanguard that led to this decision, was the failure of the company to shift to DVD-R production.

Vanguard originally produced CD-R discs, with a monthly capacity of 8-10 million discs. About two years ago, the company began to switch to DVD-R production. However, the company said that it terminated all production about a month ago because it can't compete profitably against the low prices offered by CD-R makers in China and India amid rising material costs, and its shift to the production of DVD discs has not been smooth. Vanguard is now seeking buyers for its manufacturing equipment and is set to terminate operations.

The report at DigiTimes went on to say that it is very difficult for any of these manufacturers to stay afloat if they produce less than 20 million discs a month! The competition is fierce.

Source: DigiTimes